Question

Three years ago, Jolene bought $675 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of 12 3 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

= $963.65

Explanation:

Value of stock = value of the stock at the time it was bought x ( 1 + average rate of increase)^number of years

$675 x [1 + (12 + 3/5% ) ]^3 =

$675 x ( 1 + 0.126)^3 = $963.65