Sunday, May 1, 2011

Contest #7

Jack bought 120 shares of ABC Banking for $12.27 each. He sold the shares 90 days later for 21.48% more than he paid. When he held the shares, ABC Bank paid a dividend of $0.55 per share. Brokerage fees are $25 or 0.5% of transaction amount, whichever is higher.

How much profit did Jack make with this investment?

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Answers for Contest #6

Jack, Fred, and Sara have $3000.
When this sentence is translated from English to math, the equation is:

J + F + S = 3000


Fred has a quarter the money that Jack has.

F = 1/4 x J

Sara has ten times as much money as Fred.

S = 10 x F

How much money does Jack have?

J + F + S = 3000

J + 1/4 x J + 10 x F = 3000

5/4 x J + 10 x (1/4 x J) = 3000

1.25J + 2.50J = 3000

3.75J = 3000

J = 800

Jack has $800.