Question

A stock grows by 7% every day 3 consecutive days. By what percent has it grown above it’s starting point?

Answer 1

22.5%

Explanation:

Let the starting amount be x

Recorded below is the amount after:

0 days = x

1 day = x + (7% of x) = 1.07x

2 days = 1.07x + (7% of 1.07x) = 1.1449x

3 days = 1.1449x + (7% of 1.1449) = 1.225x

so by the third day, the total amount is 1.225 times the starting amount(x) or 122.5% meaning it grew by 22.5% in three days.