The value of a stock share in a new technology company has been increasing at a rate of 8.6% quarterly. The initial price of one share was $102.15. An investor plans to sell once the value of one share reaches $233.10. If t is the number of quarters since the initial price of one share was set, which equation could be used to determine how long it will take the share to reach $233.10, assuming it continues to grow at the same rate? 102.15 = 233.10(0.086)t
Accepted Solution
A:
Answer: 39 quarter
The value of a stock share in a new technology company has been increasing at a rate of 8.6% quarterly. That means the stock will increase by 8.6%/4= 2.15% rate per quarter. The exponent function to find the number of money the investor have would be: an= $102.15(1.0215)^t