Gunther Earned a 62

question 7

Multiple Choice

Gunther earned a 62.5 percent return on a stock that he purchased one year ago. The stock is now worth $12, and he received a dividend of $1 during the year. How much did Gunther originally pay for the stock?

• A) $7.00
• B) $7.50
• C) $8.00
• D) $8.50

---

Definitions:

Inverse Function

A function that reverses the operations of a given function, such that applying both functions in succession results in the original value.

Square Root

The value that, when multiplied by itself, yields the original number; it is denoted as \(\sqrt{x}\) for a number \(x\).

Logarithm

The power to which a base, often 10 or e, must be raised to produce a given number.

Logarithm

The exponent or power to which a base must be raised to yield a given number.