Question

The price of Stock A at 9 A.M. was ​$13.64. Since​ then, the price has been increasing at the rate of ​$0.06 each hour. At noon the price of Stock B was ​$14.39. It begins to decrease at the rate of ​$0.11 each hour. If the two rates​ continue, in how many hours will the prices of the two stocks be the​ same?

Answer 1

Answer: In about 3 hours and 21 minutes the prices of the two stocks will be the same at $14.02

Step-by-step explanation: We can begin by calculating the value of stock A at noon by adding $.06 per hour or 3 hours, $0.18 to its 9am price. $13.64 + 0.18 = 13.82

Then set up the equation to find the point where the prices are equal:

x is the amount of time in hours.

.06x + 13.82 = -.11x + 14.39

Add .11x to both sides and subtract 13.82 from both sides

.06x + .11x = 14.39 - 13.82

.17x = 0.57

x = 3.353 hours

To get minutes instead of a decimal, multiply .353 × 60 ≈ 21 minutes

The time is 3:21

The increase in price is for stock A is about $0.20

13.82 + .0.06(3.353) = $14.02

Stock B decreased by $0.37

14.39 - 0.11(3.353) = $14.02