An investment club has set a goal of earning 15% on the money they invest in...

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An investment club has set a goal of earning 15% on the moneythey invest in stocks. The members are considering purchasing threepossible stocks, with their cost per share (in dollars) and theirprojected growth per share (in dollars) summarized in the table.(Let x = computer shares, y = utility shares, and z = retailshares.)
Stocks
Computer (x)   Utility (y)   Retail (z)
Cost/share   30   44   26
Growth/share   6.00   6.00  2.40
(a) If they have $392,000 to invest, how many shares of each stockshould they buy to meet their goal? (If there are infinitely manysolutions, express your answers in terms of z as in Example 3.)
b) If they buy 1500 shares of retail stock, how many shares ofthe other stocks do they buy?
computer
c)What if they buy 3000 shares of retail stock?
computer
utility
(c) What is the minimum number of shares of computer stock theywill buy?
D)What is the number of shares of the other stocks in thiscase?
utility
retail
(d) What is the maximum number of shares of computer stockpurchased?
E)What is the number of shares of the other stocks in thiscase?
utility
retail

Answer & Explanation Solved by verified expert

3.5 Ratings (296 Votes)

Given Computer x Utility y Retail z Costshare 30 44 26 Growthshare 600 600 240 a By given condition we have 30x44y26z 392000i 6x6y240z 58800 ie 5x5y2z 49000ii Now mutiplying ii by 6 and then subtracting from i we get 14y14z 98000 See Answer

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