Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.6 The Stock Market

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Financial Algebra 1st Edition Chapter 1 The Stock Market

Page 36 Problem 1 Answer

Given: Brett used money he received as a gift for high school graduation.

To find gross capital gain or loss. Product of shares and price of each stock will be total purchasing power.

Since we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will be $4000 and total selling price will be$2,433.

Hence, the gross capital will be 2433−4000=−1567<0.

Thus, we can say that $1567 was his capital loss when Brett used money he received as a gift for high school graduation.

Page 36 Problem 2 Answer

Given: Kelvin bought 125 shares of stock for 68.24 per share.

To find: What was his capital gain? Since we know that product of shares and price of each stock will be total purchasing power.

Since, we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will be125×68.24=8530 andtotal selling price will be125×85.89=10,736.25.

So, we can say that capital gain will be 10,736.25−8530=2206.25.

Thus, we can say that when Kelvin bought 125 shares of stock for 68.24 per share then his capital gain will be $2206.25.

Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.6 The Stock Market

Page 38 Problem 3 Answer

Given: Zach bought 200 shares of Goshen stock years ago for $21.35per share.

He sold all 200 shares today for$43 per share.

To find: gross capital gain. Product of shares and price of each stock will be total purchasing power.

Since, we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will be 200×21.35=4270 and total selling price will be 200×43=8600.

Hence, the gross capital will be $8600−$4270=$4330.

Thus, we can say that $4330 will be the gross capital gain for Zach.

Page 38 Problem 4 Answer

Given: Mitchell bought 600 shares of Centerco two years ago for 34.50 per share.

To find: What was the percent increase in the price per share.We will use the formula of price increase as the difference in price divided by old price given.

Since, we know that the price increase will be the difference in price divided by old price given as

Percent increase

= New price − Old price / Old price

=38.64−34.50/34.50

=4.14/34.50

=0.12

=12%

​Thus, we can say that the percent increase in the price per share will be 12% from the shares bought.

Page 38 Problem 5 Answer

Given: Mitchell bought 600 shares of Center co two years ago for 34.50 per share.

To find: was the total purchase price for the 600 shares.We will use the unitary method which will be taken as for one unit of reference.

Since, we know that price of a single share will be $34.50.

Thus, using the unitary method, we will get total purchase price as 600⋅34.50=20,700.

Thus, we can say that $20,700 will be the total purchase price for the 600 shares from the shares bought.

Page 38 Problem 6 Answer

Given: Mitchell bought 600  shares of Centerco two years ago for34.50 per share.

To find the total selling price for the 600 shares.We will use the unitary method which will be taken as for one unit of reference.

Since, we know that price of a single share will be$38.64.

Thus, using the unitary method, we will get total purchase price as 600⋆38.64=$23184.

Thus, we can say that$23,184 will be the total selling price for the 600 shares from the shares bought.

Page 38 Problem 7 Answer

Given: Mitchell bought 600 shares of Centerco two years ago for 34.50 per share.

To find percent capital gain for the 600 shares. Total gain will be the difference between the selling price and the purchase price.

Total gain will be the difference between the selling price and the purchase price given as 23184−20700=$2484 which will be equivalent to2484∗100/23184=12%.

Thus, we can say that 12% was the percent capital gain for the 600 shares from the shares bought.

Page 38 Problem 8 Answer

Given: Mitchell bought 600 shares of Centerco two years ago for 34.50 per share.

To find: the percent increase in the price of one share compare to the percent capital gain for all shares.

We know that percentage in gain will not be dependent on the number of shares bought.

Since, we have seen that the percent increase in the price of one share is 12%.

As, percentage in gain will not be dependent on the number of shares bought.

Thus, we will be same values.

Thus, we can say that when the percent increase in the price of one share compared to the percent capital gain for all 600 shares we get the same value as 12%.

Page 38 Problem 9 Answer

Given: Tori bought x shares of Mattel stock for m dollars per share.

To find: Express her capital gain or loss algebraically. Product of shares and price of each stock will be total purchasing power.

Since, we know that total purchase price for x shares will be m x and selling price will be x y.

Hence, we will get the capital gain as yx−mx=(y−m)⋅x

Thus, we can say that capital gain or loss algebraically will be (y−m)⋅x for the Tori.

Page 38 Problem 10 Answer

Given: Ramon bought x shares of Xerox stock for a total of 40,000.

To find: Express the price he paid per share algebraically.

We will use the unitary method which will be taken as for one unit of reference.

Using the unitary method, we can say that when the price of x shares is 40,000

then we get the price of one share as 40,000/x.

Thus, we can say that the price Ramon paid per share algebraically will be 40,000/x.

Page 38 Exercise 1 Answer

Given: Joe bought 200 shares in the Nikon corporation for12.25 per share.

To find Joe’s capital gain. Product of shares and price of each stock will be total purchasing power.

Since we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will be 200×12.25=2450 and total selling price will be200×$31.27=$6254

Hence, the gross capital will be$6254−$2450=$3804.

Thus, we can say that $3804will be the gross capital gain for Joe.

Page 38 Exercise 2 Answer

Given: Joe bought 200  shares in the Nikon corporation for 12.25 per share.

To find: Joe’s capital gain as a percent, rounded to the nearest percent.

We will use the formula of price increase as the difference in price divided by old price given.

Since, we know that the price increase will be the difference in price divided by old price given as

Percent increase= Gross capital gain

Total purchasing price=3804/2450

=1902/1225

≈1.553

=155.3%​

Thus, we can say that Joe’s capital gain as a percent, rounded to the nearest percent will be 155.3%.

Page 38 Exercise 3 Answer

Given: If you bought and then sold 300 shares at these prices.

To find: what was your loss.Product of shares and price of each stock will be total purchasing power.

Since, we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will be 32×300=9600 and total selling price will be20×300=6000.

Thus, we get the loss will be 9600−6000=3600.

Thus, we can say that loss will be$3600 when we bought and then sold 300 shares at these prices.

Page 38 Exercise 4 Answer

Given: General Motors stock fell from 32 per share in 2006 to 20 per share during 2008.

To find: Express your loss as a percent of the purchase price. Product of shares and price of each stock will be total purchasing power.

Since, we know that the price increase will be the difference in price divided by old price given as

(3600∗100)/9600=37.5%

Thus, we can say that 37.5% will be loss as a percent of the purchase price.

Page 38 Exercise 5 Answer

Given: Elliott purchased shares of Microsoft for 28 per share.

To find: At what price will he sell his shares? We will use the unitary method which will be taken as for one unit of reference.

Since we know that the price increase will be the difference in price divided by old price given as1.2∗28=33.6.

Thus, we can say that at $33.6 will Elliott sell his shares when he purchased shares of Microsoft.

Page 39 Exercise 6 Answer

Given: a share of stock in the Coca-Cola Company sold for 39.

To find: Express the increase in price as a percent of the price.

We will use the formula of price increase as the difference in price divided by old price given.

Since, we know that the price increase will be the difference in price divided by old price given as

Percent increase= New price − Old price / Old price

=56−39/39

=17/39

≈0.4359

=43.59%​

Thus, we can say that the percent increase in the price per share will be 43.59% for Coca-Cola Company.

Page 39 Exercise 7 Answer

Given: Alexa purchased 700  shares of Campagna Corporation stock for x dollars per share.

To find: Did Alexa have a gross capital gain or a gross capital loss.We will use the relation to compare the values to determine the gain or loss.

When we have the relation as y<x where y is the selling value and xis the purchase value.

So, we can say that

​y⋅700<x⋅700

⇒700y−700x<0 which is a loss.

Thus, we can say that Alexa have a gross capital loss for 700 shares of Campagna Corporation stock.

Page 38 Exercise 8 Answer

Given: Alexa purchased 700 shares of Campagna Corporation stock for x dollars per share.

To find: Who is correct, Alexa or Tom.We will use the relation to compare the values to determine the gain or loss.

From the values that is 700y−700x/700x, we can write it as

​700y−700x/700x

=700(y−x)/700x

=y−x/x which gives us the same value given by Tom.

Thus, we can say that both Alexa and Tom are correct as they gives the same value algebraically for the percent of the loss.

Page 39 Exercise 9 Answer

Given: Zeke bought g shares of stock for w dollars per share.

To find: Express the total purchase price of all the shares algebraically.We will use the unitary method which will be taken as for one unit of reference.

Using the unitary method we can say that when g shares of stock for w dollars per share then we get the total purchase price of all the shares algebraically as g⋆w=gw.

Thus, we can say that the total purchase price of all the shares algebraically will be gw for Zeke.

Page 39 Exercise 10 Answer

Given: Zeke bought g shares of stock for w dollars per share.

To find:  Express the capital gain algebraically.Since, we know that product of shares and price of each stock will be total purchasing power.

Since, we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will beg w,and

total selling price will be

g×w+40/100×g×w

=g×w+0.4×g×w

​Hence, the gross capital will be(g×w+0.4×g×w)−g×w=0.4×g×w.

Thus, we can say that the capital gain algebraically will be 0.4×g×w for Zeke.

Page 39 Exercise 11 Answer

Given: Zeke decides to sell his shares. To find: Express the total selling price of all the shares algebraically.

We will use the unitary method which will be taken as for one unit of reference.

Since, we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total purchasing price will beg w and total selling price will be

g×w+40/100×g×w

=1×g×w+0.4×g×w

=(1+0.4)×g×w

=1.4×g×w

Thus, we can say that 1.4×g×w will be the total selling price of all the shares algebraically for Zeke.

Page 39 Exercise 11 Answer

Given: Jake bought d shares of stock for x dollars per share years ago.

To find: Represent half of the d shares algebraically.We will be using the algebraic method to get the result.

Using the algebraic method, we can say that the value of half of the shares will be d/2=0.5d.

Thus, we can say that half of the shares will be 0.5dfor Jake.

Page 39 Exercise 12 Answer

Given: Jake bought d shares of stock for x dollars per share years ago.

To find: Represent the capital gain earned on each of the shares that were sold algebraically.

we know that product of shares and price of each stock will be total purchasing power.

Since, we know that product of shares and price of each stock will be total purchasing power.

Thus, we can say that total selling price will be

140=100(yd−xd)/xd

⇒y/x

=2.4

⇒y=2.4x

Hence, the gross capital will be

y−x/x×100​

=100⋆(2.4x−x)/x=100∗1.4

=$140

Thus, we can say that capital gain earned on each of the shares that were sold algebraically will be $140 for Jake.

Page 39 Exercise 13 Answer

Given: Jake bought d shares of stock for x dollars per share years ago.

To find: Represent the capital gain earned on all of the shares that were sold algebraically.

We know that product of shares and price of each stock will be total purchasing power.

Since, we know that total selling price will be

​140=100(yd−xd)/xd

⇒y/x

=2.4

⇒y=2.4x

​Thus, we get the capital gain earned on all of the shares as

​​=100∗((y−x)d/2)/(xd/2)

=100∗(2.4−1)x/x

=1.4100

​=140%​

Thus, we can say that the capital gain earned on all of the shares that were sold algebraically will be 140%for Jake.

Page 39 Exercise 14 Answer

Given: Jake bought a share of stock for x dollars per share years ago.

To find: Represent the total value of the shares that were sold algebraically.

We will use the unitary method which will be taken as for one unit of reference.

From the selling value as y=2.4x, we get the value of total share hold as

yd/2=2.4xd/2

=1.2xd

Thus, we can say that the total value of the shares that were sold algebraically will be 1.2xd

for Jake.

Page 39 Exercise 15 Answer

Given: Jake bought d shares of stock for x dollars per share years ago.

To find: did investing in d shares result .in a capital gain or loss for Jake?

We will use the unitary method which will be taken as for one unit of reference.

Since, we know that purchase value is xd and selling value is 1.2 xd that gives us the net gain value as

1.2xd−xd=0.2xd>0

Thus, we can say that investing in the d shares result in a capital gain for Jake.

Page 39 Exercise 16 Answer

Given: Ahmad sold 125 shares of stock for x dollars.

To find: How much did he originally pay for the shares of stock We will use the unitary method which will be taken as for one unit of reference.

Using the unitary method we can say that when 125 shares of stock are purchased for $32.75  per share we will get original pay for the shares of stock as

125⋅32.75=4093.75$

Thus, we can say that $4093.75

Ahmad originally pay for the shares of stock.

Page 39 Exercise 17 Answer

Given: Ahmad sold 125 shares of stock for x  dollars.

To find: Write an inequality that represents an amount such that Ahmad made money from the sale of the stocks.

We will try get the maximum profit and will adjust the result accordingly.

Let us take the price of a selling stock as y.

Thus, in order to make the profit, such that Ahmad made money from the sale of the stocks we will write y>32.75 which end up in giving the gain.

Thus, we can say that y>32.75 is the inequality that represents an amount such that Ahmad made money from the sale of the stocks.

Page 39 Exercise 18 Answer

Given: Suppose Ahmad lost money on the stocks. To find: Write an inequality that represents an amount such that Ahmad lost no more than 1,000  from the sale of the stocks.

We will try get the maximum profit and will adjust the result accordingly.

Since we know that the selling price of stocks will be 125x and the purchase price as 4093.75.

So, in order to maintain the loss, we take

​4093.75−125x≤1000

⇒x≥24.75​

Thus, we can say that an inequality that represents an amount such that Ahmad lost no more than 1,000 from the sale of the stocks will be x≥24.75.

Chapter 1 Solving Linear Equations

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