Question

Three years ago, Jolene bought $550 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of 10 1 2 % per year. How much is the stock worth now? (Round each money calculation you make to the nearest cent.)

Answer 1

Answer:

Hence the the value of stock after three years worth $734.44  

Step-by-step explanation:

According to question ,

Jolene bought three years ago, stock in a company worth = $550

The value has been increase after three year at rate of = 10.12 %

So,

The value after three years can be written as

Final value = initial value $( 1 +\frac{Rate}{100})^{Time}$

Or, Final value = $550 $( 1 +\frac{10.12}{100})^{3}$

Or, Final value = $550 (1.102)³

Or, Final value = $550 × 1335

I.e final value = $734.44

Hence the the value of stock after three years worth $734.44  Answer