Answer:
$30.61
Explanation:
Data provided in the question:
Annual Interest rate = 4% = 0.04
Since compounded monthly
Therefore,
Monthly interest rate, r = 0.04 ÷ 12 = 0.0033
Price per share = $30
Number of shares purchased = 100
Total value of shares purchased = $30 × 100
= $3,000
Therefore,
the amount borrowed = Total value of shares purchased
= $3,000
Amount to be paid after 6 months = Principle × ( 1 + r )ⁿ
= $3,000 × ( 1 + 0.0033 )⁶
= $3,060.50
Therefore,
The minimal value of S
= Amount to be paid after 6 months ÷ Number of shares
= $3,060.50 ÷ 100
= $30.605 ≈ $30.61
