Answer:
Explanation:
Let's start by finding the value of the share at the beginning of 2017. If the value of the share increased by 1.5 times each year from the beginning of 2010 to the beginning of 2017, then the value of the share at the beginning of 2017 is:
Value at beginning of 2017 = Value at beginning of 2010 x (1.5)^7
Value at beginning of 2017 = Initial value x 2.9
Value at beginning of 2017 = Initial value x (29/10)
We know that the value of the share at the beginning of 2017 was $4374, so we can write:
$4374 = Initial value x (29/10)
Solving for Initial value, we get:
Initial value = $4374 x (10/29)
Initial value = $1508.28 (rounded to two decimal places)
Now let's find the value of the share at the beginning of 2020. If the value of the share halved each year from the beginning of 2017 to the beginning of 2020, then the value of the share at the beginning of 2020 is:
Value at beginning of 2020 = Value at beginning of 2017 x (1/2)^3
Value at beginning of 2020 = $4374 x 0.125
Value at beginning of 2020 = $546.75
Finally, we can calculate the difference between what the investor paid for the share and what they sold it for:
Difference = Selling price - Buying price
Difference = $546.75 - $1508.28
Difference = -$961.53
The difference is negative, which means the investor lost money. The investor paid $1508.28 for the share at the beginning of 2010, but sold it for only $546.75 at the beginning of 2020. This may have been due to a variety of factors, including changes in the market or the performance of the company whose stock they invested in.