Question

Two years ago, Paul bought $350 worth of stock in a cell phone company. Since then the value of his stock has been increasing at an average rate of 9 3/4% per year. How much is the stock worth now?

Please explain your answer.

Answer 1

Answer: $384.13 ( rounded)

Original number: $384.125

Explanation:

Find 9.75% of Paul's original stock, to find out how much it increased.

9.75*350/100=34.125

Add $34.125 to his original stock.

$384.125