SOLUTION: Dividends paid on utilities stocks vary inversely with the prime interest rate. When the prime interest rate was 16%, dividends on a utility stock were $3.42 per share. If the pri

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Question 1046345: Dividends paid on utilities stocks vary inversely with the prime interest rate. When the prime interest rate was 16%, dividends on a utility stock were $3.42 per share. If the prime interest rate dropped to 11%, what dividends would be paid?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +k+ be the constant of proportionality
+3.42+=+k%2A%28+1%2F16+%29+
+k+=+54.72+
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+x+=+k%2A%28+1%2F11+%29+
+x+=+54.72%2A%28+1%2F11+%29+
+x+=+4.97+
$4.97 would be paid
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check:
+3.42%2F4.97+=+11%2F16+
+16%2A3.42+=+11%2A4.97+
+54.72+=+54.67+
error due to rounding off