Question

A simple index of three stocks opens the day with these values: The index rises 3.4% over the course of the day. What is the value of the index at the end of the day? Round your answer to the nearest hundred.

Answer 1

If I am doing the math correctly, the value of the index at the end of the day would be 4. I found this answer by multiplying 3 by 0.34 which equaled 1.02, and when rounded to the nearest hundred, is 1.

Answer 2

Answer:

The value of the index at the end of the day is $45392.6.

Step-by-step explanation:

Given : A simple index of three stocks opens the day with these values:

[name]  [number of shares] [price per share]

stock x      5000 shares            $4.10

stock Y      2000 shares           $4.50

stock z      4000 shares            $3.60

The index rises 3.4% over the course of the day.

To find : What is the value of the index at the end of the day? Round your answer to the nearest hundred ?

Solution :

Stock values of x,y and z is given by,

Stock x,

$5000\times 4.10=\ 20500$

Stock y,

$2000\times 4.50=\ 9000$

Stock z,

$4000\times 3.60=\ 14400$

The total amount will be

$A=20500+9000+14400$

$A=\ 43900$

The index rises 3.4% over the course of the day.

The value of the index at the end of the day is

$V=43900 \times (1+3.4\%)\\V=43900 \times (1+0.034)\\V=43900 \times 1.034\\V= 45392.6$

Therefore, the value of the index at the end of the day is $45392.6.