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Irina-Kira [14]
3 years ago
7

Three years ago, Jolene bought $775 worth of stock in a software company. Since then the value of her purchase has been increasi

ng at an average rate of 7 1 2 % per year. How much is the stock worth now?
Mathematics
1 answer:
Alecsey [184]3 years ago
3 0

Answer: $962.78

Step-by-step explanation:

Formula of the accumulated amount :  A =P(1+r)^t

P= Principal amount

r = rate of interest ( in decimal)

t= time ( in years )

Given, P = $775

t= 3 years

r =7\dfrac{1}{2}\%=\dfrac{15}{2}\%=7.5\%= 0.075

Now, the worth of shares after 3 years would be  A = 775(1+0.075)^3

\\\\ = 775(1.075)^3\\\\= 775\times 1.242296875\\\\=962.78

Hence, the worth of the stock = $962.78

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