## 7. A person has \$10,100 to invest in two different stock. Stock ABC costs \$32 per share and pays dividends of \$1.20 per share. Stock XYZ cos

Question

7. A person has \$10,100 to invest in two different stock. Stock ABC costs \$32 per share and pays dividends of \$1.20 per share. Stock XYZ costs \$23 per share and pays dividends of \$1.40 per share. If she wants to earn a total of \$540 in dividends, how much money should be invested in company ABC?

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2 weeks 2022-01-07T04:16:26+00:00 1 Answer 0 views 0

invested in ABC = \$3200

Step-by-step explanation:

given data

total invest = \$10,100

Stock ABC costs = \$32 per share

dividends = \$1.20 per share

Stock XYZ costs = \$23 per share

dividends = \$1.40 per share

earn a total dividends = \$540

solution

we can say total money invest express as

total money invested = 32 × P + 23 × Q

here person buys stocks of ABC is P and buys stocks of stocks of XYZ is Q

\$10,100 = 32 × P + 23 × Q

we can also write this as by multiply 3 both side

\$30,300 = 96 × P + 69 × Q  ………………….1

and total dividends will be

total dividends =  1.2 × P +1.4 × Q

\$540 =  1.2 × P +1.4 × Q

we can also write this as by multiply 80 both side

\$43200 = 96 × P + 112 × Q  ………………..2

so from equation 1 and 2 , subtracting 1 from 2

we get

Q = 300

and P = 100

so that we invest 100 × 32

invested in ABC = \$3200