SOLUTION: 2. Suppose Bob owns 2,000 shares of Company X and 10,000 shares of Company Y. The total value of Bob's holdings of these two companies is $340,000. Suppose Frank owns 8,000 sha

Algebra ->  Linear-equations -> SOLUTION: 2. Suppose Bob owns 2,000 shares of Company X and 10,000 shares of Company Y. The total value of Bob's holdings of these two companies is $340,000. Suppose Frank owns 8,000 sha      Log On


   

Question 174523: 2. Suppose Bob owns 2,000 shares of Company X and 10,000 shares of Company Y. The total value of Bob's holdings of these two companies is $340,000.
Suppose Frank owns 8,000 shares of Company X and 6,000 shares of Company Y. The total value of Franks holdings of these two companies is $340,000.
a. Write equations for Bob and Frank's holdings. Use the variables X and Y to represent the values of shares of Company X and Company Y.
b. Solve for the value of a share of Company X and Company Y.
Answer by Mathtut(3670) About Me  (Show Source):
You can put this solution on YOUR website!
let the price per share of company X and company Y be X and Y respetively
:
A. Bob's shares:2000X+10000Y=340000....eq 1
Frank's shares:8000X+6000Y=340000...eq 2
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B lets rewrite eq 1 to 2000X=340000-10000Y
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now divide by 2000 on each side
:
X=170-5Y
:
substitute X's value into eq 2
:
8000(170-5Y)+6000Y=340000
:
1360000-40000Y+6000Y=340000
:
-34000Y=-1020000
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highlight%28Y=30%29%29dollars per share of company Y
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highlight%28X=170-5%2830%29=20%29dollars per share of companyX
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