The value (in cents)of shares, x years after their flotation on the stock market, is modelled by V = 6e0.8t
Find the increase in the value of these shares, to the nearest cent, 4 years and 2 months later.
A)167
B)168
C)162
D)172
E)173

Question

Quizplus · Accepted Answer

To find the increase in value of the shares, we need to find the difference between the value after 4 years and 2 months, and the value at the time of flotation.

Plugging in x = 4.167 (4 years and 2 months in decimal form) into the equation:

V = 6e^(0.8x) = 6e^(0.8(4.167)) = 12.62 cents (rounded to 2 decimal places)

To find the increase in value:

12.62 - 6 = 6.62 cents, which when rounded to the nearest cent is 6.62 = 162 cents.

Therefore, the answer is C) 162.

The Value (In Cents)of Shares, X Years After Their Flotation