Question

Plz Help
Three years ago, Jolene bought $875 worth of stock in a software company. Since then the value of her purchase has been increasing at an average rate of
6 1/2%

 per year. How much is the stock worth now? Round the answer to the nearest cent.

The stock is worth $_______now.
PLZ HELP

Answer 1

So 6 1/2% is 6.5 and that makes it easier. For the first year you divide $875 and the answer is how much more you get. Round the big number to the nearest cent and add it to $875. You should solve it yourself to get it so ill put x as the answer. After that x is is the money thats from the first year so you do the same thing as you did to her money from the beginning and do it to x. Take x and divide it by 6.5 (hint: if you get a bigger number you did it wrong so switch around the places of the two number you are dividing) then you get another answer which ill put as y. After that you do the same thing as before to get the money that she has for the 3rd year. And dont forget to round it to cents!

btw whenever you get a problem like this NEVER add the percents together and then divide.