207k views
4 votes
Suppose there is a simple index of three stocks, stock X, stock Y, and stock Z. Stock X opens the day with 5000 shares at $4.10 per share. Stock Y opens the day with 2000 shares at $4.50 per share. Stock Z opens the day with 4000 shares at $3.60 per share. The simple index rises 3.4% over the course of the day. What is the value of the index at the end of the day? Round your answer the nearest hundred. A. $45,100 B. $43,900 C. $45,400 D. $44,800

2 Answers

2 votes

Answer:

45,400

Explanation:

just took test AP3

User Radio
by
7.9k points
7 votes

Solution:

Step 1:

Calculate the total value of stock X


\begin{gathered} =5000*\text{ \$}4.10 \\ =\text{ \$}20,500 \end{gathered}

Step 2:

Calculate the total value for Stock Y


\begin{gathered} =2000*4.5 \\ =\text{ \$}9000 \end{gathered}

Step 3:

Calculate the total value for stock Z


\begin{gathered} =4000*\text{ \$}3.60 \\ =\text{ \$}14,400 \end{gathered}

Step 4:

Calculate the total value of the shares but without the increase yet


\begin{gathered} 20,500+9000+14,400 \\ =\text{ \$}43,900 \end{gathered}

Step 5:

Calculate the increase in the simple index


\begin{gathered} =(3.4)/(100)*43900 \\ =\text{ \$}1,492.60 \end{gathered}

Step 6:

Add the increase in the simple index to the total value of the shares


\begin{gathered} 43,900+1,492.60 \\ =\text{ \$}45,392.60 \\ \approx\text{ \$}45,400 \end{gathered}

Hence,

The final answer is


\Rightarrow\text{\$}45,400

OPTION C is the right answer

User Brian Brownton
by
8.2k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories