When we work in applied settings with functions that model phenomena in the world around us, it is often useful to think carefully about the units of various quantities. Analyzing units can help us both understand the algebraic structure of functions and the variables involved, as well as assist us in assigning meaning to quantities we compute. We have already seen this with the notion of average rate of change: if a function 
\(P(t)\) measures the population in a city in year 
\(t\) and we compute 
\(AV_{[5, 11]}\text{,}\) then the units on 
\(AV_{[5, 11]}\) are “people per year,” and the value of 
\(AV_{[5, 11]}\) is telling us the average rate at which the population changes in people per year on the time interval from year 
\(5\) to year 
\(11\text{.}\)
 
Example 1.9.2.
Say that an investor is regularly purchasing stock in a particular company. Let 
\(N(t)\) represent the number of shares owned on day 
\(t\text{,}\) where 
\(t = 0\) represents the first day on which shares were purchased. Let 
\(S(t)\) give the value of one share of the stock on day 
\(t\text{;}\) note that the units on 
\(S(t)\) are dollars per share. How is the total value, 
\(V(t)\text{,}\) of the held stock on day 
\(t\) determined?
  
Solution.  Observe that the units on \(N(t)\) are “shares” and the units on \(S(t)\) are “dollars per share”.  Thus when we compute the product
\begin{equation*}
N(t) \, \text{shares}  \cdot S(t) \, \text{dollars per share}\text{,}
\end{equation*}
it follows that the resulting units are “dollars”, which is the total value of held stock.  Hence,
\begin{equation*}
V(t) = N(t) \cdot S(t)\text{.}
\end{equation*}