An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $5660 and his stock in Company B was worth $2500. The stock in Company A has increased 5% since last year and the stock in Company B has increased 9%. What was the total percentage increase in the investor's stock account? Round your answer to the nearest tenth (if necessary)

Respuesta :

Using proportions, it is found that the total percentage increase in the investor's stock account was of 6.2%.

What is a proportion?

A proportion is a fraction of a total amount, and the measures are related using a rule of three. Due to this, relations between variables, either direct or inverse proportional, can be built to find the desired measures in the problem.

The values of the stocks of Company A and Company B, after the increase are given, respectively, by:

  • Company A: 5660 x 1.05 = $5,943.
  • Company B: 2500 x 1.09 = $2,725.

The total values are given as follows:

  • Before the increase: 5660 + 2500 = 8160.
  • After the increase: 5943 + 2725 = 8668.

The percent increase is given by the increase divided by the initial value and multiplied by 100%, hence:

P = (8668 - 8160)/8160 x 100% = 6.2%.

The total percentage increase in the investor's stock account was of 6.2%.

More can be learned about proportions at https://brainly.com/question/24372153

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