SOLUTION: Hank invests $500.00 in a stock. The first year the stock earns an 8% return on his money. If Hank sells his stock, how much money does he have at the end of year one?

Question 849746: Hank invests $500.00 in a stock. The first year the stock earns an 8% return on his money. If Hank sells his stock, how much money does he have at the end of year one?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Hank invests $500.00 in a stock. The first year the stock earns an 8% return on his money. If Hank sells his stock, how much money does he have at the end of year one?
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A(t) = P(1 + rt)
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A(1) = 500(1+0.08*1)
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A(1) = 500*1.08
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A(1) = $540
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Cheers,
Stan H.
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