If a stock price increased from $124 to $188 over 3 years, what is the average percent change per year?

To find the average percent change per year, we first need to calculate the total percent change of the stock price over the 3-year period. The formula for percent change is given by:

[

\text{Percent Change} = \frac{\text{Final Value} - \text{Initial Value}}{\text{Initial Value}} \times 100

]

In this case, the initial stock price is $124 and the final stock price is $188. Applying the values:

[

\text{Percent Change} = \frac{188 - 124}{124} \times 100 = \frac{64}{124} \times 100 \approx 51.61%

]

This value reflects the total growth over three years. To find the average percent change per year, we can use the formula for the compound annual growth rate (CAGR), which over 3 years is calculated as:

[

\text{CAGR} = \left( \frac{\text{Final Value}}{\text{Initial Value}} \right)^{\frac{1}{n}} - 1

]

where (n) is the number of years. Perform the calculation:

[

\text{