Question

In 4 days, the price of a share of stock rose 3/4 of a point. On a average, what was the change in stock each day?

Answer 1

0.15 or 15%

Explanation:

If the price of a stock rose 3/4 on a point, it means that 1x became 1,75x (x + 3/4x). X is the price of the stock here.

To calculate how much the price went up each day on average, we will create exponential equation.

x = price of the stock

y = average daily change

`x*y^(4) =1.75x` divide by x

`y^(4) = 1.75`

We will calculate it using logarithms.

y = 1.15016, rounded to 1.15

We see that the stock goes up 0.15 points every day.If we multiply it by 100%, we get 15%