Question

If you bought a stock last year for a price of $126, and it has gone down 13% since then, how much is the stock worth now, to the nearest cent?

Answer 1

Answer: Hello there!

The stock that bought last year had a price of $126, and since then it has gone down by 13%.  

You want to know how much is the stock worth now.

If the value has gone down by 13%, then you need to subtract 13% of the value to $126, this is:

the 13% of $126 is equal to: 0.13*$126 = $16.38

then the value now is $126 - $16.38 = $109.62

Another way to think it is:

$126 is 100%, then if the total worth has gone down by 13%, you now have a (100% - 13%) = 87%

now you want to calculate the 87% of $126; this is:

0.87*$126 = $109.62

Answer 2

It is now $109.62. You would multiply .13 (13%) by 126 which would give you 16.38. You would then subtract 126-16.38 to get 109.62.