You invest $2,500.00 in a stock plan, buying 125 shares If each share increases in value by 10%, how much is
each share worth?
To find out how much each share is worth after a 10% increase in value, we need to calculate the new value of each share.
First, we need to calculate the new total value of the investment after the 10% increase:
Initial investment = $2,500.00
Total value after 10% increase = Initial investment + 10% of initial investment
Total value after 10% increase = $2,500.00 + 0.10 * $2,500.00
Total value after 10% increase = $2,500.00 + $250.00
Total value after 10% increase = $2,750.00
Now, we can calculate the new value of each share by dividing the total value after the 10% increase by the number of shares:
New value of each share = Total value after 10% increase / Number of shares
New value of each share = $2,750.00 / 125
New value of each share = $22.00
Therefore, each share is now worth $22.00 after a 10% increase in value.