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The table shows the value of the FTSE 100 share index over 6-month periods for 2 years. Month & Value (E) January 2017 & 7,147 July 2017 & 7,455 January 2018 & 7,692 July 2018 & 7,668 January 2019 & 7,154 If the value of shares held in the FTSE 100 was £ 2,450 in July 2017, what would it be in July 2018?

Question

The table shows the value of the FTSE 100 share index over 6-month periods for 2 years.

Month & Value (E) 
 January 2017 & 7,147 
 July 2017 & 7,455 
 January 2018 & 7,692 
 July 2018 & 7,668 
 January 2019 & 7,154

If the value of shares held in the FTSE 100 was £ 2,450 in July 2017, what would it be in July 2018?

The table shows the value of the FTSE 100 share index over 6-month periods for 2 years. Month & Value (E) January 2017 & 7,147 July 2017 & 7,455 January 2018 & 7,692 July 2018 & 7,668 January 2019 & 7,154 If the value of shares held in the FTSE 100 was £ 2,450 in July 2017, what would it be in July 2018?

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LucyMaster · Tutor for 5 years

Answer

£2,520.07

Explain

## Step 1:<br />First, we need to calculate the percentage change in the value of the FTSE 100 share index from July 2017 to July 2018.<br /><br />## Step 2:<br />The formula to calculate the percentage change is:<br /><br />### \[ \text{Percentage Change} = \frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}} \times 100\% \]<br /><br />## Step 3:<br />Substitute the given values into the formula:<br /><br />### \[ \text{Percentage Change} = \frac{7.668 - 7.455}{7.455} \times 100\% \]<br /><br />## Step 4:<br />Calculate the percentage change:<br /><br />### \[ \text{Percentage Change} = 2.86\% \]<br /><br />## Step 5:<br />Now, we need to calculate the value of the shares in July 2018. The formula to calculate the final value after a percentage change is:<br /><br />### \[ \text{Final Value} = \text{Initial Value} \times (1 + \text{Percentage Change}) \]<br /><br />## Step 6:<br />Substitute the given values into the formula:<br /><br />### \[ \text{Final Value} = £2,450 \times (1 + 2.86\%) \]<br /><br />## Step 7:<br />Calculate the final value:<br /><br />### \[ \text{Final Value} = £2,520.07 \]
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