Question

Stock was bought for $42.375 per share. Six months later the stock was selling at $55.25 per share. What’s the percent increase in the price of stock over the six months. Round to the nearest tenth of a percent.

Answer 1

To calculate the change percentage, we use the formula

`\frac{\text{price}_{\text{final}}\text{ -price\_initial}}{\text{price}_{\text{initial}}}\cdot100`

In our case, we have that the initial price is 42.375 and the final price is 55.75. So we have that the change percentage is

`\frac{55.75\text{ -42.375}}{42.375}\cdot100=31.5634`

which rounded to the nearest tenth of a percent is 31,6%. So the percent increase in the price of the stock is 31.6%