Answer:
The prices of the two stocks be the same after 2.88 hours after 12 pm
Step-by-step explanation:
Price of stock A at 9 a.m.= $13.56
The price has been increasing at the rate of $0.12 each hour.
Increase in price after 3 hours =[tex]0.12 \times 3 =0.36[/tex]
Price of Stock A at noon= 13.56+0.36 = $13.92
Let n be the no. of hours after which the prices of both the stocks will be same .
So, Increase in price after n hours = 0.12 n
Price of Stock A after n hours = 13.92+0.12 n
Price of stock B = $14.31
The price has been decreasing at the rate of $0.14 each hour.
Let n be the no. of hours
So, Increase in price after n hours = 0.14 n
Price of Stock B after n hours =14.31-0.14 n
ATQ
[tex]13.56+0.12 n= 14.31-0.14 n [/tex]
[tex]-13.56+14.31=0.14 n + 0.12 n [/tex]
[tex]0.75=0.26 n[/tex]
[tex]\frac{0.75}{0.26}=n[/tex]
[tex]2.88=n[/tex]
Hence the prices of the two stocks be the same after 2.88 hours after 12 pm .
