Question

an investor has an account with stock from two different companies. last year, his stock in company a was worth $6120 and his stock in company b was worth $1920. the stock in company a has increased 5% since last year and the stock in company b has increased 20%. what was the total percentage increase in the investor’s stock account? round your answer to the nearest tenth (if necessary).

Explanation:

Step1: Calculate total initial value

$\$6120 + \$1920 = \$8040$

Step2: Calculate new value of Company A

$\$6120 \times (1 + 0.05) = \$6120 \times 1.05 = \$6426$

Step3: Calculate new value of Company B

$\$1920 \times (1 + 0.20) = \$1920 \times 1.20 = \$2304$

Step4: Calculate total new value

$\$6426 + \$2304 = \$8730$

Step5: Calculate total increase amount

$\$8730 - \$8040 = \$690$

Step6: Calculate percentage increase

$\frac{\$690}{\$8040} \times 100\% \approx 7.9\%$

Answer:

7.9%