1) In the stock market, changes in value used to be

Question

indicated by fractions, which represented portions of $1.
If a stock had a value of $11.50, write and evaluate an
addition expression to find how much the stock is worth
after an increase of 1 /4. How do you know that is the
correct expression?

Answer 1

To find the new value of the stock after an increase of \( \frac{1}{4} \), we can start by writing an addition expression based on the initial value of the stock and the increase.

1. The initial value of the stock is \( 11.50 \).
2. The increase is \( \frac{1}{4} \) of a dollar, which is equal to \( 0.25 \).

Now we can write the addition expression:

\[ 11.50 + 0.25 \]

Now we evaluate the expression:

\[ 11.50 + 0.25 = 11.75 \]

Thus, after an increase of \( \frac{1}{4} \), the stock is worth \( 11.75 \).

To confirm that this is the correct expression, we note that we correctly identified the initial stock price and that \( \frac{1}{4} \) corresponds to an increase of \( 0.25 \). Adding this increase to the initial price gives us the new value of the stock accurately.