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Mira bought $300 of Freerange Wireless stock in January of 1998. The value of the stock is expected to increase by 7.5% per year. Use a graph to predict the year the value of Mira’s stock will reach $700.
How do I do this?
6 Answers
- KellyLv 71 decade agoFavorite Answer
Make a graph, and label the x-axis with the amount of years that go by - so, numbers 1 through maybe 25? You'll have to see how high you need to go after you do the math. The number 1 will represent the first year - January 1998. The second number will be January 1999, and so on.
Label the y-axis with numbers starting at 300 ($300) to 700 ($700). Make them in increments of, say, 50? I think that aughta do it.
Divide 300 / 0.75 (that's $300 increasing by 75% - dividing is counterintuitive, but trust me, it's how you do it). Do this as many times as you need to, until you get to 700 (that's the $700 you're looking for). Keep track of how many times you need to multiply it, as that's how many "years" have gone by to get to that number.
For the first year, put a point at 300, since in January 1998, her stock was $300. For the second year, put a point at how much it was worth, and so on. Then connect the dots. Voila, you're done. :)
- 1 decade ago
you divid 300 by 7.5, this will give you the amount gained per year, then make a graph that marks each step, maybe by the 25's? anyway, you add that total to the 300, and mark that point on the graph, continue this untill you reach 700. Make sure you connect the points! Hope i helped!
~Danny
- Anonymous1 decade ago
use each year as a point on the x axis, and use the value on the y axis. the value for year one (year 0 is the year in which she has 300 dollars) will be 300 * (1.075^1) in year 2 it would be 300 * (1.075^2). to determine the year in which the value is equal to 700 set the value equal to 700. so you'd have 700=300*(1.075^x) solve for x and thats the year in which her portfolio equals 700. i hope this helps
Source(s): finance major - How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
you would make an equation using the years %/y and $300 then just graph it normally