Question

Your stock current costs is $34.56 dollars per share. At the closing of the Dow, your stock went up 1/8%. How much is your stock worth now?

Answer 1

After a 1/8% increase, the stock originally worth $34.56 per share went up by $0.0432, making each share worth approximately $34.60.

Step-by-step explanation:

To calculate the new value of a stock after a percentage increase, you add the increase to the original amount. Since the stock's value went up by 1/8%, we first convert this percentage to its decimal form by dividing 1/8 by 100, which gives us 0.00125. To find the increase in the stock's value, we multiply the current cost of the stock, $34.56, by 0.00125.

This gives us an increase of $0.0432 per share. Adding this to the original stock price:
$34.56 + $0.0432 = $34.6032. Therefore, after a 1/8% increase, the stock is now worth approximately $34.60 per share (rounded to the nearest cent).