Question

Gavin thought he was making a good investment when he heard about an online grocery company. So he bought 500 shares in the company at $25 a share. The company ended up going bankrupt, and when Gavin sold his shares he only made $150 in total. What was the percent decrease in the share price? A)1.2%
B) 3%
C) 82.3%
D) 98.8%

Answer 1

The answer would be D) 98.8% because if the initial price is $25 per share, then Gavin would have spent $12,500. None of the other answers make sense since if it was just 3% or 82.3%, then it would be too much to equal $150 in return. If you were to put C, then the shares would equal $4.43 each, and If you bought 500 shares, then it would equal $2,212.5 which would be way more than $150. In the other hand, D is correct because then only 1 share would equal $0.3 and that multiplied by 500 equals precisely $150.

Hope this helps!