An investor purchased 300 shares of a stock for $2,604 He is buying more shares at a rate of $12.20 He wants the average purchase price of all the shares to be $10.15 The average purchase price is the total amount spent divided by the total number of shares. Which equation can he use to find the number of shares to buy to achieve his desired average purchase price?
Answer
A
12.20=300 + x2,604 + 10.15x
B
12.20=2,604 + 10.15x300 + x
C
10.15=300 + x2,604 + 12.20x
D
10.15=2,604 + 12.20x300 + x
Explanation
Let x be the number of additional shares. The total amount spent will be $2,604 plus $12.20x, and the total number of shares will be 300 + x. Since average purchase price equals total amount spent divided by total shares, set that fraction equal to $10.15: 10.15 = (2,604 + 12.20x)/(300 + x). This is choice D.
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