Question

An investor has an account with stock from two different companies. Last year, his stock in company a was worth $1400 and his stock in company b was worth $5400. The stock in company a has increased 1% since last year and the stock in company b has increased 20%. What was the total percentage increase in the investor's stock account? round your answer to the nearest tenth (if necessary).

Answer 1

16.1%

Step-by-step explanation:

Find new values:

1400(1+0.01)=1414

5400(1+0.2)=6480

Last Year This Year

Stock A 1400 1414

Stock B 5400 6480

Total 6800 7894

Find overall increase:

6800(1+r)=7894

6800(1+r)/6800=7894/6800

1+r=1.160882

r=0.160882 (Subtracted 1)

Final Answer: 16.1% (Multiply by 100 and round to nearest 10th)