Question

On the last day of April 2009, the price of a share of stock in a major entertainment corporation was $5.36. Over the next 4 years, the annual growth rate was 4.15%. The growth in the price of this stock can be modeled by the function where P represents the price, in dollars, and t represents the number of years since the last day in April 2009. Which function can be used to represent the price of a share of stock in this entertainment corporation on the last day in June 2011?

Answer 1

The function that can be used to represent the price of a share of stock is given below. Then the correct option is C.

$\rm P = 5.36 \left [ \left (1.0415 \right )^{\frac{1}{12}} \right ]^{26}$

What is compound interest?

Compound interest is the interest on a loan or deposit calculated based on the initial principal and the accumulated interest from the previous period.

We know that the compound interest is given as

A = P(1 + r)ⁿ

Where A is the amount, P is the initial amount, r is the rate of interest, and n is the number of years.

On the last day of April 2009, the price of a share of stock in a major entertainment corporation was $5.36.

Over the next 4 years, the annual growth rate was 4.15%.

The growth in the price of this stock can be modeled by the function

$\rm P = 5.36 \times (1.0415)^t$

Where P represents the price, in dollars, and t represents the number of years since the last day in April 2009.

Then the function can be used to represent the price of a share of stock in this entertainment corporation on the last day of June 2011 will be

The number of the years will be

t = 26 / 12

Then the function will be

$\rm P = 5.36 \left [ \left (1.0415 \right )^{\frac{1}{12}} \right ]^{26}$

Then the correct option is C.

More about the compound interest link is given below.

brainly.com/question/25857212

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