Question

You purchased 50 shares of a stock at $100 per share. Your stock value dropped 5% in one year. If the stock were to continue to drop at the same rate for an additional half a year, what would be the total value of the stock at that time?

Answer 1

4630

Step-by-step explanation:

Answer 2

$4625

Step-by-step explanation:

Initial value of stock=50 shares each at $100=(50×100)=$5000

Value drops at a rate of 5% in 1.5 years

The total value of the drop=-(5/100)×5000×1.5=-$375

The total value after 1.5 years=Initial value+the drop in value=5000+(-375)=$4625