Question

The value of a stock when purchased was $10 a share. The stock grew at a monthly rate of 7%. Find the number of months it took to reach a value of $15.75 a share.

Answer 1

For month 1 multiply $10 by .07 (7%).
Add the value you get (.7) to 10. After one month the stock is now $10.7.
For month 2 multiply $10.7 by .07.
Add the value you get (?) to 10.7. After two months the stock is now (?).