If Apple's stock underwent simple interest increase from February, 2005, through August, 2005 and into 2006, what would the price be in December, 2006 Round your answer to the nearest cent. $$\begin{array} { | l | l | l | l | l | l | l | }
\hline \text { Month } & \text { Dec. } 1997 & \text { Aug. } 1999 & \text { Mar. } 2000 & \text { May 2000 } & \text { Aug. } 2000 & \text { Dec. } 2000 \
\hline \begin{array} { l }
\text { Monthly } \
\text { Price }
\end{array} & 3.28 & 16.31 & 33.95 & 21 & 30.47 & 7.44 \
\hline \text { Month } & \text { Jan. } 2002 & \text { Mar. } 2003 & \text { Oct. } 2003 & \text { Nov. 2004 } & \text { Feb. } 2005 & \text { Aug. 2005 } \
\hline \begin{array} { l }
\text { Monthly } \
\text { Price }
\end{array} & 12.36 & 7.07 & 11.44 & 33.53 & 44.86 & 45.78 \
\hline
\end{array}$$
A)$48.33
B) $48.54
C) $49.23
D) $47.49
E) $48.23

Question

If Apple's stock underwent simple interest increase from February, 2005, through August, 2005 and into 2006, what would the price be in December, 2006  Round your answer to the nearest cent. $$\begin{array} { | l | l | l | l | l | l | l | } 
\hline \text { Month } & \text { Dec. } 1997 & \text { Aug. } 1999 & \text { Mar. } 2000 & \text { May 2000 } & \text { Aug. } 2000 & \text { Dec. } 2000 \
\hline \begin{array} { l } 
\text { Monthly } \
\text { Price }
\end{array} & 3.28 & 16.31 & 33.95 & 21 & 30.47 & 7.44 \
\hline \text { Month } & \text { Jan. } 2002 & \text { Mar. } 2003 & \text { Oct. } 2003 & \text { Nov. 2004 } & \text { Feb. } 2005 & \text { Aug. 2005 } \
\hline \begin{array} { l } 
\text { Monthly } \
\text { Price }
\end{array} & 12.36 & 7.07 & 11.44 & 33.53 & 44.86 & 45.78 \
\hline
\end{array}$$ 
A)$48.33
B) $48.54
C) $49.23
D) $47.49
E) $48.23

Quizplus · Accepted Answer

To calculate the price in December 2006 using simple interest, we need the initial amount, the rate of interest, and the time period. The initial amount is the price in February 2005, which is $44.86. The final amount is the price in August 2005, which is $45.78. The time period from February 2005 to August 2005 is 6 months. First, calculate the interest earned from February 2005 to August 2005:Interest = Final amount - Initial amount = $45.78 - $44.86 = $0.92Since this is over 6 months, to find the annual interest rate, we multiply the interest by 2 (to scale it to a year):Annual interest = $0.92 * 2 = $1.84To find the interest for the period from August 2005 to December 2006, which is 16 months, we convert this period into years (16/12 = 1.333 years). Then, calculate the interest for this period:Interest for 1.333 years = $1.84 * 1.333 = $2.45 approximatelyFinally, add this interest to the initial amount to get the price in December 2006:Price in December 2006 = Initial amount + Interest for 1.333 years = $44.86 + $2.45 = $47.31However, since none of the options exactly match this calculation and rounding was mentioned, the closest option to our calculated value is:E) $48.23. This suggests there might have been a slight miscalculation or misunderstanding in the interest calculation steps or the time period used. The correct approach involves understanding the simple interest formula and applying it correctly, but without the exact rate of interest or more precise instructions, we approximate based on the given data and the closest matching option.

If Apple's Stock Underwent Simple Interest Increase from February, 2005