An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $2000 and his stock in Company B was worth $900. The stock in Company A has increased 12% since last year and the stock in Company B has increased 1%. 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  $2000 and his stock in Company B was worth  $900. The stock in Company A has increased  12% since last year and the stock in Company  B has increased  1%. 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 12% increase. Original value of stock in Company A: $2000 Percentage increase: 12% New value = Original value + (Original value × Percentage increase) New value = $2000 + ($2000 × 0.12) New value = $2000 + $240 New value = $2240Calculate New Value Company B: Calculate the new value of the investor's stock in Company B after a 1% increase. Original value of stock in Company B: $900 Percentage increase: 1% New value = Original value + (Original value × Percentage increase) New value = $900 + ($900 × 0.01) New value = $900 + $9 New value = $909Calculate Total Stock Value: Calculate the total value of the investor's stock account after the increases. Total new value = New value of Company A stock + New value of Company B stock Total new value = $2240 + $909 Total new value = $3149Calculate Original Total Value: Calculate the original total value of the investor's stock account before the increases. Original total value = Original value of Company A stock + Original value of Company B stock Original total value = $2000 + $900 Original total value = $2900Calculate Total Increase: Calculate the total increase in the investor's stock account. Total increase = Total new value - Original total value Total increase = $3149 - $2900 Total increase = $249Calculate Total Percentage Increase: Calculate the total percentage increase in the investor's stock account. Total percentage increase = (Total increase / Original total value) × 100 Total percentage increase = ($249 / $2900) × 100 Total percentage increase ≈ 8.5862% Round to the nearest tenth: 8.6%

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