Question

5.2.19

Challenge A​ company's stock began the day at ​$25.75 per share. That price drops by ​$1.08 each hour. What is the price per share after 4 ​hours? What would it be after 20 hours if this rate​ continues? Use pencil and paper. Explain what the signs of the answers mean in this context.
The price per share after hours is
nothing dollars.

Answer 1

The price per share after 4 hours is $21.43

The price per share after 20 hours is $4.15

Explanation:

Equations

The price of the company's stock is initially at $25.75 per share. Each hour the price drops by $1.08. This condition can be modeled by the function:

`P(t)=25.75-1.08t`

Where t is the time in hours.

The sign means the function is decreasing as time passes.

When t=4 hours, the price will be:

`P(4)=25.75-1.08\cdot 4=21.43`

The price per share after 4 hours is $21.43

Now find the price when t=20 hours

`P(20)=25.75-1.08\cdot 20=4.15`

The price per share after 20 hours is $4.15