9. A stock's price has been continuously declining at a rate of 5% per week. If the stock started at a price of

Mathematics

1 answer:

WARRIOR [948]2 years ago

4 0

Answer:

After 13.6 weeks the price per share will be $20.

Step-by-step explanation:

The stock's price has been continuously declining at a rate of 5% per week.

Now, if the stock's price is $62.50 per share at the start, then after w weeks the price will be $62.5(1 - \frac{5w}{100} )$ dollars.

Hence, we have to find the value of w if the after w week price per share is $20.

So, $62.5(1 - \frac{5w}{100} ) = 20$

⇒ $1 - \frac{w}{20} = \frac{20}{62.5} = 0.32$

⇒ $\frac{w}{20} = 0.68$

⇒ w = 13.6 weeks

Therefore, after 13.6 weeks the price per share will be $20. (Answer)

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