Question

during the 1980's, the price of one share of Johnson and Johnson stock rose from $17 1/4 to $56 1/8. how much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Answer 1

Given:

Price of one share in 1980 = $
`17\frac14`

Price of one share in 1989 = $
`56\frac18`.

To find:

How much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Step-by-step explanation:

Using the given information,

Change in the value of each share =
`56\frac18-17\frac14`

=
`(448+1)/(8)-\frac(68+1)/(4)`

=
`(449)/(8)-\frac(69)/(4)`

=
`(449-138)/(8)`

=
`(311)/(8)`

Value of one share increased by $
`(311)/(8)`.

Value of 100 shares increased by =
`100* (311)/(8)`

=
`(31100)/(8)`

=
`(7775)/(2)`

=
`3887.5`

Therefore, you would have made $3887.5 if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989.