The following question is based on the following information about the stocks of

Question

The following question is based on the following information about the stocks of KT Corporation, International Flavors & Fragrances, and Quality Systems.

You invested a total of $11,600 in shares of the three stocks at the given prices, and expected to earn $272 in annual dividends. If you purchased a total of 200 shares, how many shares of each stock did you purchase?

Price Dividend Yield KT (KT Corporation) $16 7% IFF (International
Flavors & Fragrances) $56 2% QSII (Quality Systems) $80 2%

Explanation / Answer

Let x shares of KT , y nos. of shares of IFF and z shares of QSII

x +y + z = 200 ------(1)

KT @ $ 16 : 16x

IFF @ $ 56 : 56y

QSII @ $ 80 : 80z

16x +56y + 80z = 11600 -----(2)

Dividend : 16*0.07x + 56*0.02y + 80*0.02z = 272

1.12x + 1.12y + 1.6z ----(3)

We have 3 unknown and 3 equations :

x = 50 ; y = 50 ; z = 100

KT = 50 shares ; IFF = 50 shares ; QSII = 100 shares

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