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Question

To the nearest dollar, what does the analyst believe the value of the stock will be at the end of three weeks? (Note: Disregard the $ sign when gridding your answer.)

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Solution

Since the stock value loses 28 percent every week, it will be 100−28=72 % every week.

Thus, r=0.72

Thus, the equation V=360(r)t will be V=360(0.72)t

After 3 weeks, V=360(0.72)3=134.47=134

Thus, r=0.72

Thus, the equation V=360(r)t will be V=360(0.72)t

After 3 weeks, V=360(0.72)3=134.47=134

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