Question

A stock increases in value by 55%, and then decreases in value by 25%. What is the overall percent change of the stock?

Answer 1

Answer:

Overall percent change of stock is increase by 16.3%

Step-by-step explanation:

Given:

A stock increases in value by 55%

Then the value decreases by 25%

To find the overall percent change of the stock.

Solution:

Let the initial value of the stock be = $100

Increase in value by 55% will be = $0.55\times \ 100=\ 55$

The new value after increase = $\ 100+\ 55=\ 155$

Decrease in value of 25% will be = $0.25\times \ 155=\ 38.75$

New value after decrease = $\ 155-\ 38.75= \ 116.25$

Overall change in value = $\ 116.25-\ 100=\ 16.25$

The over all percent change can be given as:

⇒ $\frac{Change\ in\ value}{Original\ value}\times 100$

⇒ $\frac{\ 16.25}{\ 100}\times 100$

⇒ $16.25\%\approx 16.3\%$

Overall percent change of stock is increase by 16.3%