Question

Mr Nenni bought Pinterest stock at $19 a share, it is now $40.51, he was told to invest $3000, he only invested $2000 how much money did he lose?Hint: 1) How many more shares of stock could he have purchased 2) How much did the price go up?

Answer 1

1) The price of the share was $19. Buying a total of $3000, the number of shares is the division of the total amount of money invested by the price of one share:

`\text{number of shares}=(3000)/(19)=157.89`

But Nenni bought only $2000, so the number of shares is:

`\text{number of shares}=(2000)/(19)=105.26`

So the number of shares he could have purchased is the difference of these number of shares:

`157.89-105.26=52.63`

(We could also just divide the diffence of money invested (3000 - 2000 = 1000) by the price of one share: 1000 / 19 = 52.63)

2) To find how much the price went up, we just need to subtract the difference of the prices:

`40.51-19=21.51`

Now, in order to find how much money did Nenni lose, we need to multiply the rise of the price ($21.51) by the amount of shares he didn't buy (52.63):

`21.51\cdot52.63=1132.07`

So Nenni lost $1132.07.