An investor has an account with stock from two different companies. Last year, her stock in Company A was worth $2230 and her stock in Company B was worth $600. The stock in Company A has increased 20% since last year and the stock in Company B has increased 8%. What was the total percentage increase in the investor's stock account? Round your answer to the nearest tenth (if necessary). Answer:

Question

An investor has an account with stock from two different companies. Last year, her stock in Company A was worth  $2230 and her stock in Company B was worth  $600. The stock in Company A has increased 20% since last year and the stock in Company B has increased  8%. What was the total percentage increase in the investor's stock account? Round your answer to the nearest tenth (if necessary). Answer:

Bytelearn · Accepted Answer

Calculate New Value Company A: Calculate the new value of the investor's stock in Company A after a 20% increase. Original value of stock in Company A: $2230 Percentage increase: 20% New value = Original value + (Percentage increase × Original value) New value = $2230 + (0.20 × $2230) New value = $2230 + $446 New value = $2676Calculate New Value Company B: Calculate the new value of the investor's stock in Company B after an 8% increase. Original value of stock in Company B: $600 Percentage increase: 8% New value = Original value + (Percentage increase × Original value) New value = $600 + (0.08 × $600) New value = $600 + $48 New value = $648Calculate Total Value Last Year: Calculate the total value of the investor's stock last year. Total value last year = Value of stock in Company A + Value of stock in Company B Total value last year = $2230 + $600 Total value last year = $2830Calculate Total Value This Year: Calculate the total value of the investor's stock this year. Total value this year = New value of stock in Company A + New value of stock in Company B Total value this year = $2676 + $648 Total value this year = $3324Calculate Total Increase: Calculate the total increase in the investor's stock account. Total increase = Total value this year - Total value last year Total increase = $3324 - $2830 Total increase = $494Calculate Total Percentage Increase: Calculate the total percentage increase in the investor's stock account. Total percentage increase = (Total increase / Total value last year) × 100% Total percentage increase = ($494 / $2830) × 100% Total percentage increase ≈ 17.4569% Round to the nearest tenth: 17.5%

Full solution

More problems from Percent of change: word problems

Related topics