Question

As a wedding gift, a couple was given 100 shares of stock worth $27.50 per share. By their first anniversary, the value of the stock had risen by 8 percent.
How much more was the stock worth at the end of the year than when the couple first received it?
A. $110
B. $220
C. $1,200
D. $2,200
E. $2,750

Answer 1

The stock couple recieved was $220 more than their initial value.

Step-by-step explanation:

Total number of shares recieved= 100

The initial worth of the stock= $ 27.50

Percentage rise in the price of stock= 8%

Hence increased price of the complete stock at the end of the year= Price increase of one stock* total number of stocks

Substituting the values-

Price increase of one stock= (8/100) *27.50

Price increase= $ 2.2

Net increase in worth of the stock= 2.2*100= $ 220

Hence, the stock was $ 220 more than the initial price.