Question

• 21 Theodore inherited two different stocks whose yearly income was $2100. The total appraised value of the stocks was $40,000 and one was paying 4% and one 690 per year. What was the value of each stock? o

Answer 1

hello

the yearly income was $2100

the appraised value = $40,000

one of the stocks pays 4% annually

the other pays $690 yearly

let's find how much the 4% stock pays annually

to do this, let's subtract the income of one of the stocks from the total income. i.e 690 from 2100

$2100-690=1410$

the other stock pays $1410 annually

now we can simply find the value of each stock

$\begin{gathered} 4\text{\% of x gives 1410 annually} \\ \frac{4}{100}=\frac{1410}{x} \\ \text{cross multiply both sides } \\ 4\times x=100\times1410 \\ 4x=141000 \\ \text{divide both sides by 4} \\ \frac{4x}{4}=\frac{141000}{4} \\ x=35250 \end{gathered}$

the value of one of the stock is $35250

we can proceed to find the value of the other stock by subtracting 35250 from 40000 which is the value of the two stock

$40000-35250=4750$

from the calculations above, the value of the stocks is $35250 and $4750