Question

An investor has an account with stock from two different companies. Last year, her stock in Company A was worth $5990 and her stock in Company B was worth $2450. The stock in Company A has decreased 20% since last year and the stock in Company B has decreased 8%. What was the total percentage decrease in the investor's stock account? Round your answer to the nearest tenth (if necessary).

Answer 1

Answer:

16.5%

Step-by-step explanation:

Find new values:

5990(1−0.2)=4792

2450(1−0.08)=2254

Last Year This Year

Stock A 5990 4792

Stock B 2450 2254

Total 8440 7046  

Find overall decrease:  

8440(1−r)=7046

8440(1-r)/8440= 7046/8440

1−r=0.834834  

SUBTRACT 1

−r=−0.165166

DIVIDE BY -1

r=0.165166

Multiply by 100 and round to nearest 10th

Final Answer: 16.5%

:)

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Answer 2

Answer: 14.38%

Step-by-step explanation:

Worth of stock in Company A = $5990

Percent decrease = 20%

New worth = $5990 - (20% × $5990)

= $5990 - (0.2 × $5990)

= $5990 - $1198

= $4972

Worth of stock in Company B = $2450

Percent decrease = 8%

New worth = $2450 - (8% × $2450)

= $2450 - (0.08 × $2450)

= $2450 - $196

= $2254

Previous total worth = $5990 + $2450

= $8440

Total worth = $4972 + $2254

= $7226

The total percentage decrease in the investor's stock account will be:

= [($8440 - $7226) / $8440] × 100

=( $1214 / $8440) × 100

= 0.1438 × 100

= 14.38%