Ajax buys 20 shares of stock at $\$20$ per share. The shares increase in value by $20\%$. He then sells 10 shares. After the shares decrease in value by $10\%$, he buys another 20 shares. The shares then all increase by $50\%$. Determine the total dollar value of the 30 shares that Ajax now owns.
I'm stuck
+285 Answer:
$972
Step-by-step explanation:
Ajax buys 20 shares of stock at $20.
The cost of 20 shares = 20 × $20 = $400
The shares increase in value by 20%
Now the cost of 20 shares = 400 + (20%×400)
= 400 + 80
= $480
Cost per share = = $24
He sells 10 shares = $20 × 10 = $240
Now he has 10 share costs $240
After the shares decrease in value by 10%, he buys another 20 shares.
Cost per shares after decrease by 10% = 24 - (10%×24)
= 24 - 2.40
= $21.60
He buys 20 shares and his remaining 10 shares = 20 + 10 = 30 shares
Cost of 30 shares = 21.60 × 30 = $648
The shares then all increase by 50% = 648 + (50% × 648)
= 648 + (0.5 × 648)
= 648 + 324
= $972
The total value of the 30 shares that Ajax own is $972
