Question

Jake bought 120 shares of stock for $3600. One year later, the stock was valued at $4032. What is the one-year rate of return (percent increase) in the value of the stock? oW! • 14% 0 10% • 8% © 12%

Answer 1

the value of the stock is approximately 12%.

Explanation:

AI-generated answer

To calculate the one-year rate of return (percent increase) in the value of the stock, we need to determine the percentage increase in the value of the stock from $3600 to $4032.

First, let's calculate the dollar amount of the increase:

Increase = Final value - Initial value

Increase = $4032 - $3600

Increase = $432

Next, let's calculate the percentage increase:

Percentage increase = (Increase / Initial value) * 100

Percentage increase = ($432 / $3600) * 100

Percentage increase ≈ 12%

Therefore, the one-year rate of return (percent increase) in the value of the stock is approximately 12%.