Question

The value of a stock drops 4 points each day for five straight days. What is the net change in the value of the stock? Write your expression and represent the daily change in value as an integer.

Answer 1

Answer:

Net change = -20  which represents a drop in price of stock by $20

Step-by-step explanation:

The value of a stock drops 4 points each day for five straight days

Lets assume initial value of stock to be $ y

Now lets reduce this value by 4 for 5 straight days

Day                                new stock value in $         daily change as an Integer

Day 1                                   y-4                                  (y-4)-y= y-4-y = -4

Day 2                                 (y-4)-4 = y-8                  (y-8)-(y-4) =y-8-y+4= -4

Day 3                                  (y-8)-4 = y-12               (y-12)-(y-8)= y-12-y+8 = -4

Day 4                                  (y-12)-4 = y-16              (y-16)-(y-12)=y-16-y+12=-4

Day 5                                   (y-16)-4 = y-20           (y-20)-(y-16)=y-20-y+16=-4

The final value of stock in day 5 will be $ y-20

The net change is the difference in value of stock at day 1 and day 5

Day 1 = $ y

Day 5 = $ y-20

Net change= $(y-20)-$y

=y-20-y = -20

=20