Otto's investment portfolio consisted of shares of internet stock and copper stock. During the year, the value of his internet shares increased 10%,but the value of his copper shares decreased from $10,000 to $9,000. During the same year, the total value of his portfolio increased by 6%.What was the dollar value of his internet shares at the end of the year?
Let the dollar value of his Internet shares =S
At the end of the year, his Internet shares =1.1S
At the end of the year, his copper shares =$9,000
1.1S + $9,000 =1.06[S + $9,000], solve for S
S = $13,500 - dollar value of his Internet shares at beginning of the year.
$13,500 x 1.1 = $14,850 - dollar value at the end of the year.