Question

15.
a) on monday, the price of a share in an oil company changed by -$1.27. karen owns 120 shares in the oil company. by how much did the shares change in value on monday?
b) on monday, the price of a share in a gas company changed by $1.43. karen owns 190 shares in the gas company. by how much did the shares change in value on monday?
c) calculate karen’s overall gain or loss on monday.

Explanation:

Part a)

Step1: Identify the formula for value change

The value change of shares is calculated by multiplying the number of shares by the change in price per share. So the formula is \( \text{Value Change} = \text{Number of Shares} \times \text{Change in Price per Share} \).

Step2: Substitute the values

Karen has 120 shares and the price change per share is \(-\$1.27\). So we calculate \( 120\times(- 1.27) \).
\(120\times(-1.27)=- 152.4\)

Step1: Use the value change formula

Again, using \( \text{Value Change} = \text{Number of Shares} \times \text{Change in Price per Share} \).

Step2: Substitute the values

Karen has 190 shares and the price change per share is \(\$1.43\). So we calculate \(190\times1.43\).
\(190\times1.43 = 271.7\)

Step1: Find the total gain and loss

From part a) we have a loss of \$152.4 and from part b) we have a gain of \$271.7. To find the overall gain or loss, we subtract the loss from the gain (or add the gain and the negative of the loss).

Step2: Calculate the overall change

Overall change \(=271.7+(- 152.4)=271.7 - 152.4\)
\(271.7-152.4 = 119.3\)

Answer:

The value of the oil company shares changed by \(-\$152.4\) (a loss of \$152.4).

Part b)