Respuesta :
Given:
Price of one share in 1980 = $[tex]17\dfrac14[/tex]
Price of one share in 1989 = $[tex]56\dfrac18[/tex].
To find:
How much money would you have made if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989?
Explanation:
Using the given information,
Change in the value of each share = [tex]56\dfrac18-17\dfrac14[/tex]
= [tex]\dfrac{448+1}{8}-\dfrac\dfrac{68+1}{4}[/tex]
= [tex]\dfrac{449}{8}-\dfrac\dfrac{69}{4}[/tex]
= [tex]\dfrac{449-138}{8}[/tex]
= [tex]\dfrac{311}{8}[/tex]
Value of one share increased by $[tex]\dfrac{311}{8}[/tex].
Value of 100 shares increased by = [tex]100\times \dfrac{311}{8}[/tex]
= [tex]\dfrac{31100}{8}[/tex]
= [tex]\dfrac{7775}{2}[/tex]
= [tex]3887.5[/tex]
Therefore, you would have made $3887.5 if you bought 100 shares of Johnson & Johnson stock in 1980 and sold it in 1989.
