Question

during the 1980's, the price of one share of Johnson and Johnson stock rose from $17 1/4 to $56 1/8. how much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Answer 1

Given:

Price of one share in 1980 = $$17\dfrac14$

Price of one share in 1989 = $$56\dfrac18$.

To find:

How much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?

Explanation:

Using the given information,

Change in the value of each share = $56\dfrac18-17\dfrac14$

                                                          = $\dfrac{448+1}{8}-\dfrac\dfrac{68+1}{4}$

                                                          = $\dfrac{449}{8}-\dfrac\dfrac{69}{4}$

                                                          = $\dfrac{449-138}{8}$

                                                          = $\dfrac{311}{8}$

Value of one share increased by $$\dfrac{311}{8}$.

Value of 100 shares increased by = $100\times \dfrac{311}{8}$

                                                        = $\dfrac{31100}{8}$

                                                        = $\dfrac{7775}{2}$

                                                        = $3887.5$

Therefore, you would have made $3887.5 if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989.