Question

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?

Answer 1

`$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`.