Justin invest some money in two stocks (a and b) and the total value of his initial investment is $4000. IN ONE YR. the value of stock A increases BY 6.2% AND THE value of stock B increases by 12.8%. at the End of the yr. the new value of his portfolio is $4401. How much was invested in each stock?

Question

anonymous · Answer

So lets have A be the amount invested in stock A and B is the amount invested in stock B.

What does it mean that "the total value of his initial investment is $4000."

anonymous · Answer

that a and b together is 4000?

anonymous · Answer

Right!

anonymous · Answer

A + B = 4000

anonymous · Answer

Ok, so now what does it mean that the value of stock A increases by 6.2%

anonymous · Answer

How much money will he have from A at the end of the year?

anonymous · Answer

.062x + .128x = 4000?

anonymous · Answer

Good guess, but not quite.

anonymous · Answer

First remember that the amount he has at the end of the year is $4401 not 4000 anymore.

anonymous · Answer

And second, you switched to using x instead of A and B. ;p

anonymous · Answer

ok so .062A + .128B = 4401 OR AM I STILL WAAY OFF?

anonymous · Answer

That's really close.

anonymous · Answer

But the investment _gains+ 6.2 and 12.8%, so you also will have what you started with.

anonymous · Answer

So you need to add in A + B also.

anonymous · Answer

i have to go i have this class at 12:30 but thank u soo  much i will be back on b/c u are helping and this is exactly what i neeed! Hope you'll still be availble around 3 or 4?

anonymous · Answer

Yes I am.