What is the average yearly increase in value of the stock?

Options

A. 1
B. 5
C. 10
D. 25

Answer

To find the average yearly increase in the value of the stock, we can follow these steps:

### Step 1: Identify the stock values at the two points in time.
- Stock value in June 2000 (y1) = 125
- Stock value in June 2005 (y2) = 150

### Step 2: Calculate the difference in stock values.
- Difference = y2 - y1 = 150 - 125 = 25

### Step 3: Determine the time period over which the increase occurred.
- Time period = June 2005 - June 2000 = 5 years

### Step 4: Calculate the average yearly increase.
- Average yearly increase = (Difference in stock values) / (Time period)
- Average yearly increase = 25 / 5 = 5

### Conclusion:
The average yearly increase in the value of the stock is 5.

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