Question

Travis owns a stock in the SBO Company. after the first year of ownership the stock is worth $45 per share. travis estimates that the value of a share will increase by $2.80 per year. what will be the share value for Five years

Answer 1

1st year value =45$ 2nd year value=45+2.80$=47.80$ 3rd year value=47.8+2.80$=50.60$ 4th year value=50.60+2.80=53.40$ 5th year value=53.40+2.80=56.20$ ater 5 years value of share becomes 56.20$ or share after 5 years= 45+4*2.80=45+11.20=56.20$