The Case of The Accidental Double, Triple, Quadruple, Quintuple

On 19 December 2003, Zelmo Zeroman accidently bought some Red Hat (RHT) stock at $16.87 per share. He decided to hold onto the shares because he believed Red Hat as a good long term investment. It took almost seven years for the accidental buy to double. At the of 2015 the RHT shares had increased by a multiple of five.

   12/19/2003:  $ 16.87  [accidental buy]
   09/01/2010:  $ 36.35  [accidental double at $33.74]
   10/27/2011:  $ 50.61  [accidental triple]
   12/19/2014:  $ 67.48  [accidental quadruple]
   12/30/2015:  $ 84.35  [accidental quintuple]
   ??/??/????:  $101.22  [accidental sextuple?]
   ??/??/????:  $118.09  [accidental septuple?]
   ??/??/????:  $134.96  [accidental octuple?]
   ??/??/????:  $151.83  [accidental nonuple?]
   ??/??/????:  $168.70  [accidental decuple?]
   05/16/2019:  $185.57  [accidental undecuple]
Exercises
  1. $16.87 increased to $84.35 is a _______% increase.

  2. If V(t) = 16.87(1.14353)^t, then V(12) = ______. [round to nearest hundredth]

  3. A growth factor of 1.14353 is a growth rate of _______%. [round to nearest hundredth]

Update::2019.05.16

IBM agreed to buy Red Hat for $190 per share, so this story is done.


Creator: Gerald Thurman [gthurman@gmail.com]
Created: 03 January 2016 (posted 04 January 2016)

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This work is licensed under a Creative Commons Attribution 3.0 United States License.