Directions
Read the following questions. Choose the right answer.
There is only ONE correct answer to each question.
The initial offering price of a share in a company is 90 riyals. After three months, the value of the share is 96 riyals. If we assume that the value of the share increases monthly according to an arithmetic sequence, what is the expected value of the share after seven months?
- 100
- 102
- 104
- 106
Show answer
Correct answer: C. 104
Why
The increase over 3 months is 96−90=6 riyals, so the monthly common difference is 6/3=2 riyals. After 7 months: 90 + 7×2 = 104 riyals.
