Question

The price of a share of one stock fell from $8.75 to $8.54. Find the percent decrease. Round your answer to the nearest tenth of a percent.

Answer 1

8.54 / 8.75 =0.975

1 - 0.975 = 0.025

0.025 x 100% ( and nearest thenth)

=2.5%

Answer 2

2.4%.

Explanation:

Consider the formula for percentage change (Mathisfun)

`\displaystyle \rm \text{Percentage Change} = \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}}* 100\%`.

Note that the old value shall be the one on the denominator.

For this question:

`\displaystyle \rm \begin{aligned}\text{Percentage Change} &= \frac{\text{New Value} - \text{Old Value}}{\text{Old Value}}* 100\%\\ &= (8.75 - 8.54)/(8.75)* 100\%\\&= -2.4\%\end{aligned}`.

The value here is negative, but don't be alerted. A positive value of change indicates an increase, while a negative value of change indicates a decrease. In other words, the stock price dropped by 2.4%.