Question

Please Help!
Three years ago, Jolene bought $875 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of
6 1/2%

per year. How much is the stock worth now? Round the answer to the nearest cent.

The stock is worth $_______now.

Answer 1

If you would like to know how much is the stock worth now, you can calculate this using the following steps:

1 year: 6 1/2 % of $875 = 6.5% * $875 = 6.5/100 * 875 = $56.875
$875 + $56.875 = $931.875
2 year: 6 1/2 % of $931.875 = 6.5% * $931.875 = 6.5/100 * 931.875 = $60.572
$931.875 + $60.572 = $992.447
3 year: 6 1/2 % of $992.447 = 6.5% * $992.447 = 6.5/100 * 992.447 = $64.509
$992.447 + $64.509 = $1056.956 = $1056.96 = $1057

The correct result would be: The stock is worth $1057 now.