Question 1026831
Suppose Wal-mart stock is selling at $59 a share and Mattel stock is selling at $28 as share. Amy has a maximum of $6000 to invest. She wishes to purchase four times as many shares of Wal-mart as of Mattel. Only whole shares of stock can be purchased.
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Equations:
59W + 28M = 6000
W = 4M
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Substitute for "W" and solve for "M":
59*4M + 28M = 6000
236M + 28M = 6000
264M = 6000
M = 22.73
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Solve for "W::
W = 4M = 90.9
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Modifying the numbers
91 shares of Walmart leaves 6000 - 91*59 = $631
$631 will buy 631/28 = 22 shares of Mattel leaving 631-22*28 = $15.00
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Cheers,
Stan H.
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