Question

Shyam invested money in the stock market. In the first year, his stock increased 20%. He paid his stock broker $300 and then lost $450. He withdrew $500, and then his remaining investment doubled. Shyam’s investment is now worth $7100. How much was Shyam’s original investment?

Answer 1

Answer:

Shyam's original investment was $4000.

Step-by-step explanation:

Suppose, Shyam's original investment was  $x$ dollar.

In the first year, his stock increased 20%. So, the value of the stock will be: $(x+0.20x)=1.20x$ dollar.

He paid his stock broker $300 and then lost $450. So now, the value of the stock will be:  $(1.20x-300-450)=(1.20x-750)$ dollar.

He then withdrew $500, so the value of the remaining investment $=(1.20x-750-500)=(1.20x-1250)$ dollar and this remaining investment doubled now.

So, the value of the investment now $=2(1.20x-1250)$ dollar, which is given as $7100.

Thus, the equation will be.......

$2(1.20x-1250)=7100\\ \\ 2.40x-2500=7100\\ \\ 2.40x=7100+2500=9600\\ \\ x=\frac{9600}{2.40}=4000$

So, Shyam's original investment was $4000.