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Math Help - stocks Question 2

  1. #1
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    stocks Question 2

    1. You have invested in stock for 1 year. If you start with $125 worth, a 8.25% increase in value will cause it to be worth how much? If you start with $125 of stock and then it grows to $215, what was the growth rate?
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  2. #2
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    Quote Originally Posted by jilllamtn View Post
    1. You have invested in stock for 1 year. If you start with $125 worth, a 8.25% increase in value will cause it to be worth how much? If you start with $125 of stock and then it grows to $215, what was the growth rate?
    For the first question, multiply $125 by (1+8.25%), which is: $125 (1.0825) = $135.31. That's your answer.

    I assume that you want your growth rate in terms of percent increases. So you find the difference between the old and new price and divide that difference by the old price. So: \frac{215-125}{125}=0.72, which is 72%.

    Hope that helps.
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