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ST: Master | Next Rank: 500 Posts; Posts: 191; Joined: Sat Feb 14, 2009 11:56 am; Thanked: 1 times

by ST » Fri May 15, 2009 6:14 am

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An investor purchased 20 shares of certain stock at price of $45.75 per share. Later this investor purchased 30 more shares at price of $46.25 per share. What was the average price per share that this investor paid for the 50 shares?

1. 45.80
2. 45.95
3. 46.00
4. 46.05
5. 46.20

Anwer is 4

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Source: Beat The GMAT — Problem Solving | Fri May 15, 2009 6:14 am

dmateer25: Community Manager; Posts: 1049; Joined: Sun Apr 06, 2008 5:15 pm; Location: Pittsburgh, PA; Thanked: 113 times; Followed by:27 members; GMAT Score:710

by dmateer25 » Fri May 15, 2009 6:25 am

First Purchase: 20 * 45.75 = 915

Second Purchase: 30 * 46.25 = 1387.50

Total Purchase Price: 915 + 1387.50 = 2302.5

Average Purchase Price/Share: 2302.50/50 = 46.05

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

Re: Share

by Scott@TargetTestPrep » Wed Nov 25, 2020 6:57 am

ST wrote: ↑
Fri May 15, 2009 6:14 am
An investor purchased 20 shares of certain stock at price of $45.75 per share. Later this investor purchased 30 more shares at price of $46.25 per share. What was the average price per share that this investor paid for the 50 shares?

1. 45.80
2. 45.95
3. 46.00
4. 46.05
5. 46.20

Answer is 4

Solution:

The average price per share of the stock was:

(20 x 45.75 + 30 x 46.25) / 50

(915 + 1387.5) / 50

2302.5/50 = $46.05

Answer: 4 or D

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