Question

Norman purchased $420 of stock in Carnival Cruise Lines last week. That stock is now worth $525. Use your knowledge of percent change to determine the percentage by which the value of Norman's stock has increased. Be sure to show your work.

Answer 1

Answer:

The stock Norman purchased increased in its value by 25%.

Step-by-step explanation:

Original Value of the stock = $ 420

New(Current) value of the stock = $ 525

We have to find the percentage change in the value of stock. The formula to calculate the percentage change is:

$\text{Percentage Change}=\frac{\text{New Value - Original Value}}{\text{Original Value}} \times 100\%$

Substituting the given values into this formula results in:

$\text{Percentage Change}=\frac{525-420}{420} \times 100\% \\\\ \text{Percentage Change}=\frac{105}{420} \times 100\%\\\\ \text{Percentage Change}=0.25 \times 100\% \\\\ \text{Percentage Change}=25 \%$

A positive value of Percentage Change indicates a growth. This means that the stock Norman purchased increased in its value by 25%.