Question

10 ptsFour years ago, Ms. Scott bought $800 worth of stock in Netflix. Since then the value of her purchase has beenincreasing at an average rate of 20 % per year. How much is the stock worth now?

Answer 1

the principal is p = 800 $

rate of interest is r = 20 %

time is t = 4 years.

the expression for the Amount after four years is given as follows,

$A=p(1+\frac{r}{100})^t$

put the values,

$A=800\times(1+\frac{20}{100})^4$$\begin{gathered} A=800\times(\frac{120}{100})^4 \\ A=800\times2.0736 \\ A=1658.88\text{ \ } \end{gathered}$

so the worth of the stock is 1658.88 $ now.

thus, the answer is 1658.88 $