Dylan purchased 1,000 shares in a start-up company for $45 per share after the stocks Initial...

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Dylan purchased 1,000 shares in a start-up company for $45 per share after the stocks Initial Public Offering (IPO). Over the

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Answer 1

Answer #1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

A=45*(1-0.12)^3

=45*(0.88)^3

=45*0.681472

=$30.67(Approx).

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Answer 2

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