Question

You invest $2,500.00 in a stock plan, buying 125 shares. If each share increases in value by 10%, how much is each share worth?

Answer 1

You work out the price of each share:
$2500 ÷ 125 = $20 each
10% of that is $2, which added on means the share is worth $22

Hope it helps:-)

Answer 2

Worth of each share after the increase in price = $22

Explanation:

Total amount of money invested in a stock plan = $2500

Number of shares bought in the stock plan = 125

`\text{Now, Amount of 1 share that is bought in the stock plan = }(2500)/(125)`

⇒ Amount of 1 share that is bought in the stock plan = $20

Percentage by which the price of each share is increased = 10%

So, Worth of each share after the increase in price = 20 + 10% of 20

⇒ 20 + 0.10 × 20

⇒ 20 + 2

⇒ $22

Hence, Worth of each share after the increase in price = $22