Question

part 3 of 3
a company’s stock began the day at $30.75 per share. that price drops by $1.08 each hour.
a. what is the price per share after 4 hours?
b. what will it be after 31 hours if this rate continues?
c. explain what the signs of the answers mean in this context.

c. the price per share after 31 hours will be -$2.23.
d. the price per share after 31 hours will be -$2.73.

c. choose the answer that best completes the statement about what the signs mean.
a. a share of stock had a negative value after 4 hours, but after 31 hours, it would have a positive value.
b. a share of stock had a positive value after 4 hours, but after 31 hours, it would have a negative value.
c. a share of stock had less value after 4 hours, but after 31 hours, it would have more value.
d. a share of stock had more value after 4 hours, but after 31 hours, it would have less value.

Explanation:

Part a

Step1: Determine the total drop in 4 hours

The price drops by \$1.08 each hour. So in 4 hours, the total drop is \( 1.08\times4 \).
\( 1.08\times4 = 4.32 \)

Step2: Subtract the total drop from the initial price

The initial price is \$30.75. So the price after 4 hours is \( 30.75 - 4.32 \).
\( 30.75 - 4.32 = 26.43 \)

Part b

Step1: Determine the total drop in 31 hours

The price drops by \$1.08 each hour. So in 31 hours, the total drop is \( 1.08\times31 \).
\( 1.08\times31 = 33.48 \)

Step2: Subtract the total drop from the initial price

The initial price is \$30.75. So the price after 31 hours is \( 30.75 - 33.48 \).
\( 30.75 - 33.48=- 2.73 \)

Part c

• After 4 hours, the price is \$26.43 (positive, meaning the stock still has positive worth).
• After 31 hours, the price is \$-2.73 (negative, implying the stock's value is negative in this model, perhaps indicating it has lost all positive worth and more).
• Option A is wrong as 4 - hour value is positive and 31 - hour is negative. Option C and D talk about "more/less value" but the question is about the sign (positive/negative), not the magnitude of change in the way they frame it. So B is correct.

Answer:

\$26.43