Question

Suppose that a certain fortunate person has a net worth of $77.0 billion ($). If her stock has a good year and gains $3.20 billion () in value, what is her new net worth? Express your answer to three significant figures. Suppose that this individual now decides to give one-eighth of a percent (0.125 ) of her new net worth to charity. How many dollars are given to charity? The answer is not 10.0025 or 12.5. I have been working at this problem and just need to figure out how do this for future reference.

Answer 1

New net worth to three significant figures = $80.2 billion

Dollars are given to charity = $100,250,000

Step-by-step explanation:

Net worth = $77.0 billion

stock Gains = $3.20 billion

New net worth = $77.0 billion + $3.20 billion = $80.20 billion

New net worth to three significant figures = $80.2 billion

One-eighth of a percent = (1/8 x 1) / 100 = 0.00125

Dollars are given to charity = 0.00125 X $80.2 billion = $100,250,000

Or

$80,200,000,000/100 = $802,000,000