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
Oct 28, 2016

Answer:

#$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#.