Question

Three years ago, Jolene bought $850 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of 12 1 5 % per year. How much is the stock worth now? (Round each money calculation you make to the nearest cent.) The stock is worth $ now.

Answer 1

To do this we'll convert our percentage into a decimal. Move the decimal 3 places to the left which will equal 0.125.

Now, we'll multiply all of our factors.

850 x .125 x 3 = 318.75

318.75 is the amount of interest they have earned in 3 years time.

Next, we will add that onto how much the original stock was worth which was $850.

850 + 318.75 = 1168.75

So, the stock will now be work $1168.80