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Ajax buys 20 shares of stock at $\$20$ per share. The shares increase in value by $20\%$. He then sells 10 shares. After the shares decrease in value by $10\%$, he buys another 20 shares. The shares then all increase by $50\%$. Determine the total dollar value of the 30 shares that Ajax now owns.

 

I'm stuck

 Jan 6, 2021
edited by Guest  Jan 6, 2021
 #1
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Answer:

$972

Step-by-step explanation:

Ajax buys 20 shares of stock at $20.

The cost of 20 shares = 20 × $20 = $400

The shares increase in value by 20%

Now the cost of 20 shares = 400 + (20%×400)

                                            = 400 + 80

                                            = $480

Cost per share =   = $24

He sells 10 shares = $20 × 10 = $240

Now he has 10 share costs $240

After the shares decrease in value by 10%, he buys another 20 shares.

Cost per shares after decrease by 10% = 24 - (10%×24)

                                                                 = 24 - 2.40

                                                                 = $21.60

He buys 20 shares and his remaining 10 shares = 20 + 10 = 30 shares

Cost of 30 shares = 21.60 × 30 = $648

The shares then all increase by 50% = 648 + (50% × 648)

                                                             = 648 + (0.5 × 648)

                                                             = 648 + 324

                                                             = $972

The total value of the 30 shares that Ajax own is $972

 Jan 6, 2021

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