Question

A simple index of three stocks opens the day with these values: The index rises 3.4% over the course of the day. What is the value of the index at the end of the day? Round your answer to the nearest hundred.

Answer 1

If I am doing the math correctly, the value of the index at the end of the day would be 4. I found this answer by multiplying 3 by 0.34 which equaled 1.02, and when rounded to the nearest hundred, is 1.

Answer 2

The value of the index at the end of the day is $45392.6.

Explanation:

Given : A simple index of three stocks opens the day with these values:

[name] [number of shares] [price per share]

stock x 5000 shares $4.10

stock Y 2000 shares $4.50

stock z 4000 shares $3.60

The index rises 3.4% over the course of the day.

To find : What is the value of the index at the end of the day? Round your answer to the nearest hundred ?

Solution :

Stock values of x,y and z is given by,

Stock x,

`5000* 4.10=\$20500`

Stock y,

`2000* 4.50=\$9000`

Stock z,

`4000* 3.60=\$14400`

The total amount will be

`A=20500+9000+14400`

`A=\$43900`

The index rises 3.4% over the course of the day.

The value of the index at the end of the day is

`V=43900 * (1+3.4\%)\\V=43900 * (1+0.034)\\V=43900 * 1.034\\V= 45392.6`

Therefore, the value of the index at the end of the day is $45392.6.