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OTC market codes

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OTC market codes

by orel » Sun Nov 30, 2008 8:15 am
All of the stocks on the over-the counter market are designated by either a 4-letter or a 5-letter code that is created by using the 26 letters of the alphabet. With of the following gives the maximum number of different stocks that can be designated with these codes?

2*26^5
26*26^4
27*26^4
26*26^5
27*26^5

In solving this problem I did the following: 26^4+26^5=27*26^4 it is the correct answer

But I don't know why did I do that....

Can anyone please explain.... Thanks
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by dmateer25 » Sun Nov 30, 2008 8:31 am
Think of each letter slot.

__ __ __ __

for a four letter code. Each slot can be 1 of the 26 letters in the alphabet.
so it would be 26*26*26*26=26^4




__ __ __ __ __

Same logic for the 5 letter code. Each slot can be 1 of the 26 letters in the alphabet.
26*26*26*26*26=26^5

So the max stocks would = 26^4+26^5 = 26^4(27)
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by orel » Sun Nov 30, 2008 9:33 am
thanks, dmateer25,

your explanation is really helpful!!!
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