Answer:
Net change = -20 which represents a drop in price of stock by $20
Explanation:
The value of a stock drops 4 points each day for five straight days
Lets assume initial value of stock to be $ y
Now lets reduce this value by 4 for 5 straight days
Day new stock value in $ daily change as an Integer
Day 1 y-4 (y-4)-y= y-4-y = -4
Day 2 (y-4)-4 = y-8 (y-8)-(y-4) =y-8-y+4= -4
Day 3 (y-8)-4 = y-12 (y-12)-(y-8)= y-12-y+8 = -4
Day 4 (y-12)-4 = y-16 (y-16)-(y-12)=y-16-y+12=-4
Day 5 (y-16)-4 = y-20 (y-20)-(y-16)=y-20-y+16=-4
The final value of stock in day 5 will be $ y-20
The net change is the difference in value of stock at day 1 and day 5
Day 1 = $ y
Day 5 = $ y-20
Net change= $(y-20)-$y
=y-20-y = -20
=20