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yaroslaw [1]
3 years ago
13

You purchased a stock for $150 per share. The value of the stock has increased by 25% per year. Which function represents the va

lue of one stock t years after is was purchased?
Mathematics
1 answer:
meriva3 years ago
6 0

Answer:

S(t) = 150(1.25)^{t}

Step-by-step explanation:

I purchased a stock for $150 per share. The value of the stock has increased by 25% per year.

Therefore, the value of the stock is compounded each year at a rate of 25%.

Now, using the formula of compound interest, after t years the value of the stock will be given by

S(t) = 150(1 + \frac{25}{100})^{t} = 150(1.25)^{t} (Answer)

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Step-by-step explanation:

Two ways we can solve this problem:

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