The stock for a given company has steadily increased from the beginning of 2006 to the end of 2007 by 5% per year, however, in 2008 the stocked increased by 10%. If the stock was purchased at $12.43 at the beginning of 2006, then what is the value of the stock at the end of 2008? Round your answer to the nearest cent.
Apply each year’s increase to the stock’s value: $12.43 × 1.05 × 1.05 × 1.10 = $15.0744825. Rounded to the nearest cent, the stock is worth $15.07, which is choice a.
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