Chapter 7.5, Problem 24E

To determine

To calculate the total value of $500$ shares of the stock.

Answer to Problem 24E

The total value of $500$ shares of the stockis $\$13800$ .

Explanation of Solution

Given information:

There are total of $500$ shares,

Original price of each share is $\$24$ ,

The value of each share increased by $15\%$ .

Formula used:

New amount $=$ Original amount $+$ Amount of increase

Calculation:

To find the new amount, first multiply the percent of change by the original amount to

find the amount of change. Then increase the original amount by the amount of change.

Total price of each share $=$ Original price of each share $+$ Amount of increase price in each share

  $\begin{array}{l}=24+15\%\times \text{24 }\left[\text{Substitute}\right]\\ =24+0.15\times \text{24 }\left[\text{Write percent as a decimal}\right]\\ =\text{27}\text{.60 }\left[\text{Evaluate}\text{.}\right]\end{array}$

Total price of each share is $\$27.60$ .

Therefore,

  $\begin{array}{l}\text{Total price of 500 shares}=500\times \text{price of each share}\\ =500\times 27.60\left[\begin{array}{l}\text{Substitute the value}\\ \text{of each share}\end{array}\right]\\ =13800\left[\text{Evaluate}\right]\end{array}$

Hence,

The total value of $500$ shares of the stockis $\$13800$ .