Respuesta :
The stock's value is 49,842/43,363 in 2013, or 1.15 times higher than in 2014.
An = P(1-R)n gives the value $An after n years for an item of value $P that depreciates at R% per year:A4= 100,000(1- 0.13)4 = $57,289.761 = $57,290 (approximately) in the year 2012, P = $100,000, R = 13% = 0.13 a.
A5 = 100,000(1- 0.13)5 = $49,842.09 = $49,842 (approximately) in the year 2013.
The stock's value is 49,842/57,290 in 2013, which is 0.87 times higher than in 2012.
b. In 2010, A2 = 100,000(1-0.13)2 = $75,690; in 2011, A3 = 100,000(1-0.13)3 = $65,850; the stock's value in 2011 is 65,850/75,690, or 0.87 times more than it was in 2010.
c. In the year 2014,
A6= 100,000(1-0.13)6 = $43,363
In the year 2012,
A4= $57,290 (approx.)
As a result, the stock's value increased by 0.76 times in 2014 to 43,363/57,290.
d. In 2013, A5 was worth $49,842; in 2014, A6 was worth $43,363. As a result, the stock's value in 2013 was 49,842/43,363, or 1.15 times more than it was in 2014.
What determines a stock's worth?
Fundamentally, stock prices are determined by market supply and demand. The value of a business is the sum of its price and the number of outstanding shares, or market capitalization.
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Full Question - In 2008 Melvin thought that he was making a sound investment by buying $100,000 worth of Alpha Biotechnology stock. Unfortunately, his investment has depreciated, losing 13% of its current value each year.
A. the value of melvin's alpha biotechnology stock in 2013 is how many times as large as the value of his stock in 2012?
B. the value of melvin's alpha biotechnology stock in 2011 is how many times as large as the value of his stock in 2010?
C. the value of melvin's alpha biotechnology stock in 2014 is how many times as large as the value of his stock in 2012?
D. the value of melvin's alpha biotechnology stock in 2013 is how many times as large as the value of his stock in 2014?
