Question

A museum has a 1/2 ounce piece of a precious metal. When the museum first received the piece, it had a value of $90. Its value has since decreased by 20%. What is the current value per ounce of the piece of metal?

Answer 1

The current value of the precious metal is $144/oz

-First, you'd want to determine the original value per ounce since that's what the final unit being asked for is.

- Since the original value of the half ounce piece is given, this first step is fairly simple. You just double ninety.

- We now know that the metal was worth $180/oz when the museum first received it.

- We need to determine the current price of the metal now that is has had a twenty percent loss of value.

- My favorite way to factor in 20% is simply to divide by five since it's a lot more simple than finding the ratio of x$/1%

- $180/5=$36

- Thirty-six dollars is the price drop over the course of the museum possessing the precious metal.

- You now take $180-$36=$144