Question

Three years ago Jolene bought $625 worth of stock in a software company since then the value of her purchase has been increasing at an average rate of 10 1/2% per year how much is the stock worth now

Answer 1

$843.27

Explanation:

We'll use the compound interest formula: A = P(1 + r)ⁿ

A = Final amount

P = Starting amount (625)

r = rate (0.105)

n = Years (3)

Our equation should look like this

A = 625(1.105)³

Now just calculate

A = 625(1.349232625)

A = 843.270390625