Three year ago, Jolene bought $750 worth of stock in a software company. Since then the value of her purchase has been of 125% per year. How much is the stock worth now?

1 Answer
statmango ยท EZ as pi
Oct 28, 2016

$1464.84

Explanation:

Depending on whether you use simple or compound interest. I would think the stock would be worth:

$750xx1.25=$937.50 at the end of one year,

$937.50xx1.25=$1171.88 at the end of two years, and

$1171.88xx1.25=$1464.84 at the end of three years.

Or, if you want to compute it in one shot,

$750xx1.25^3=$1464.84.

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