Problema Solution
You bought 10 shares of Google stock a year ago. Today, the stock is worth $571 per share. Your investment advisor tells you that the stock has gained 34.72% in value over the course of the year. At what price did you purchase the stock?
Answer provided by our tutors
let 'x' represent the price per share that the stock was purchased
this means that for 10 shares you have paid: 10x dollars
today the stock is worth $571 per share and the 10 shares have value of:
10*571 = $5,710
Your investment advisor tells you that the stock has gained 34.72% in value over the course of the year:
10x + 0.3472*10x = 5,710
1.3472*10x = 5710
by solving we find
x = $423.84
click here to see the step by step solution of the equation:
the purchase price of the stock was $423.84 per share.