Answer:
After 13.6 weeks the price per share will be $20.
Step-by-step explanation:
The stock's price has been continuously declining at a rate of 5% per week.
Now, if the stock's price is $62.50 per share at the start, then after w weeks the price will be [tex]62.5(1 - \frac{5w}{100} )[/tex] dollars.
Hence, we have to find the value of w if the after w week price per share is $20.
So, [tex]62.5(1 - \frac{5w}{100} ) = 20[/tex]
⇒ [tex]1 - \frac{w}{20} = \frac{20}{62.5} = 0.32[/tex]
⇒ [tex]\frac{w}{20} = 0.68[/tex]
⇒ w = 13.6 weeks
Therefore, after 13.6 weeks the price per share will be $20. (Answer)
