in november 2008, apple stock dropped from $105 to $95 per share, and Microsoft dropped from $21 to $20 per share. If you invested a total of $3,570 in these stocks at the end of October and sold them for $3,250 at the end of November, how many shares of each stock did you buy?
To determine the number of shares bought for each stock, we need to find the price per share for both Apple and Microsoft.
For Apple:
- The price dropped from $105 to $95, a decrease of $10 per share.
For Microsoft:
- The price dropped from $21 to $20, a decrease of $1 per share.
Let's assume you bought x shares of Apple and y shares of Microsoft.
The total amount invested in Apple stock is given by:
Total invested in Apple = Price per share * Number of shares
$3,570 = $105x
Rearranging the equation, we find:
x = $3,570 / $105
Similarly, the total amount invested in Microsoft stock is given by:
Total invested in Microsoft = Price per share * Number of shares
$3,570 = $21y
Rearranging the equation, we find:
y = $3,570 / $21
Using a calculator, we can find the values of x and y:
x = 34 (rounded to the nearest whole number)
y = 170 (rounded to the nearest whole number)
Therefore, you bought 34 shares of Apple stock and 170 shares of Microsoft stock.