Question

Three years ago, Jolene bought $575 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of 12and 1/ 5 % per year. How much is the stock worth now? (Round each money calculation you make to the nearest cent.)

Answer 1

Answer:

$818.71

Step-by-step explanation:

We need to calculate the increasing per year.

Year 1: $575 * 12.5% = $646.88

Year 2: $646.88 * 12.5% = $727.74

Year 3: $727.74 * 12.5% = $818.71

After three year, the stock worths $818.71