Question

You invest $3,756.00 and buy 100 shares of a company's stock. Their value increases by 12%. How much is each share worth?

Answer 1

($3756/100)(100+12)/100

$37.56(1.12)

$42.0672

$42.07 (to nearest cent)

Answer 2

Each share worth is $42.0672 .

Explanation:

As given

You invest $3,756.00 and buy 100 shares of a company's stock.

Their value increases by 12%.

12% is written in the decimal form

`= (12)/(100)`

= 0.12

Share value increase = 0.12 × Investment cost

= 0.12 × 3756

= $450.72

Total value of shares becomes after increases of 12% = Share value increase + Investment cost .

Total value of shares becomes after increases of 12% = $3756+ $450.72

= $4206.72

`Each\ shares\ worth = (Total\ value\ of\ shares\ after\ increase\ of\ 12\%)/(Number\ of\ shares)`

`Each\ shares\ worth = (4206.72)/(100)`

Each shares worth = $42.0672

Therefore the each share worth is $42.0672 .