Question

A stock loses 10% of its value on Monday. On Tuesday it loses 20% of the value it had at the end of the day on Monday. What is the overall percent loss in value from the beginning of Monday to the end of Tuesday?

Answer 1

Answer:  The overall percent loss is 28%.  

Step-by-step explanation:  Given that a stock loses 10% of its value on Monday and on Tuesday it loses 20% of the value it had at the end of the day on Monday.

We are to find the overall percent loss in value from the beginning of Monday to the end of Tuesday.

Let x represents the value of a stock at the beginning of Monday.

Then, the value of the stock at the end of Monday is given by

$x-10\%\times x=x-\dfrac{10}{100}x=x-\dfrac{x}{10}=\dfrac{9}{10}x.$

So, the value of the stock at the beginning of Tuesday is $\dfrac{9}{10}x.$

Therefore, the value of the stock at the end of Tuesday is given by

$\dfrac{9}{10}x-20\%\times\dfrac{9}{10}x\\\\\\=\dfrac{9}{10}x-\dfrac{20}{100}\times\dfrac{9}{10}x\\\\\\=\dfrac{9}{10}-\dfrac{9}{50}x\\\\\\=\dfrac{36}{50}x\\\\\\=\dfrac{18}{25}x\\\\\\=x-\dfrac{7}{25}x\\\\\\=x-\dfrac{28}{100}x\\\\\\=x-28\%x.$

Thus, the overall percent loss is 28%.