An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $5660 and his stock in Company B was worth $750. The stock in Company A has increased 5% since last year and the stock in Company B has increased 22%. 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, his stock in Company A was worth  $5660 and his stock in Company B was worth  $750. The stock in Company A has increased  5% since last year and the stock in Company B has increased  22%. 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 5% increase. Original value of stock in Company A: $5660 Percentage increase: 5% New value = Original value + (Original value * Percentage increase) New value = $5660 + ($5660 * 0.05) New value = $5660 + $283 New value = $5943Calculate New Value Company B: Calculate the new value of the investor's stock in Company B after a 22% increase. Original value of stock in Company B: $750 Percentage increase: 22% New value = Original value + (Original value * Percentage increase) New value = $750 + ($750 * 0.22) New value = $750 + $165 New value = $915Calculate 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 = $5660 + $750 Total value last year = $6410Calculate 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 = $5943 + $915 Total value this year = $6858Calculate Total Increase: Calculate the total increase in value of the investor's stock. Total increase = Total value this year - Total value last year Total increase = $6858 - $6410 Total increase = $448Calculate 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 = ($448 / $6410) * 100% Total percentage increase ≈ 6.988% (rounded to three decimal places for intermediate calculation)Round Total Percentage Increase: Round the total percentage increase to the nearest tenth. Total percentage increase ≈ 7.0%

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