135k views
5 votes
As a wedding gift, a couple was given 100 shares of stock worth $27.50 per share. By their first anniversary, the value of the stock had risen by 8 percent.

How much more was the stock worth at the end of the year than when the couple first received it?
A. $110
B. $220
C. $1,200
D. $2,200
E. $2,750

1 Answer

7 votes

The stock couple recieved was $220 more than their initial value.

Explanation:

Total number of shares recieved= 100

The initial worth of the stock= $ 27.50

Percentage rise in the price of stock= 8%

Hence increased price of the complete stock at the end of the year= Price increase of one stock* total number of stocks

Substituting the values-

Price increase of one stock= (8/100) *27.50

Price increase= $ 2.2

Net increase in worth of the stock= 2.2*100= $ 220

Hence, the stock was $ 220 more than the initial price.

User David Terei
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories