If a stock's price is $200 and it increases by 15% in one year, what will be its

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Question: If a stock\'s price is $200 and it increases by 15% in one year, what will be its price after one year?

Options:

Correct Answer: $220

Solution:

New Price = Old Price + (Percentage Increase of Old Price) = 200 + (15/100 * 200) = 200 + 30 = $230

If a stock's price is $200 and it increases by 15% in one year, what will be its price after one year?

If a stock's price is $200 and it increases by 15% in one year, what will be its price after one year?

Step 1: Identify the old price of the stock, which is $200.
Step 2: Determine the percentage increase, which is 15%.
Step 3: Convert the percentage increase into a decimal by dividing by 100. So, 15% becomes 0.15.
Step 4: Calculate the amount of increase by multiplying the old price by the decimal. So, 0.15 * 200 = $30.
Step 5: Add the amount of increase to the old price. So, $200 + $30 = $230.
Step 6: The new price of the stock after one year is $230.

Percentage Increase – Understanding how to calculate a percentage increase on a given value.
Basic Arithmetic – Applying basic arithmetic operations to find the new value after an increase.