1. ## percentage question

The price of the common shares of SouthCo was valued at \$44.28 at the end of 2005, increased by 7.29% in 2006, and overall increased by 6.71% over the two year period 2005/2006. What was the original price of each share at the beginning of 2005?
For full marks your answer should be rounded to the nearest cent.

2. Hi there, my interpretation of this question is as follows.

To find the value of the share price at the end of 2006, simply increase the end of 2005 price by 7.29%.

Which is $44.28 \times 1.0729 = 47.50801$

Now the increase over the entire 2 years (beginning 2005 to the end of 2006) is 6.71% to reach 47.50801

so find x where $x \times 1.0671 = 47.50801$ therefore the price at the start of 2005 would be

$x = \frac{47.50801}{1.0671} = 44.52$

3. ## thanks!

thanks pickslides