Question

Three years ago, Jolene bought $800 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of 6.5% per year. How much is the stock worth now?

Answer 1

Answer:

The value of stock now = $966.35

Step-by-step explanation:

Given in question as,

Three year ago Jolene purchased a stock worth = $800

The stock is increasing every year at the rate of = 6.5%

So, now after three years ,

The value of this stock = initial value × (1 + $\frac{rate}{100}$)³

Or,                                = $800 × ( 1 + $\frac{6.5}{100}$)³

∴                                   = $800 × 1.2079 = $966.35

Hence , the Value of stock now = $966.35  Answer