Answer:
The correct answer is either US$ 24.875 or US$ 24 7/8
Explanation:
Stock price at the beginning of the day = US$ 27 3/8
Stock price at the beginning of the day = US$ 27 3/8 - US$ 2 1/2
There are two ways of solving this question:
1. Keeping the values as fractional numbers
27 3/8 - 2 1/2
[(27 * 8) + 3]/8 - [(2 * 2) + 1]/2
219/8 - 5/2 = 219/8 - 20/8 = 199/8
199/8 = 24 7/8
The closing value is US$ 24 7/8
2. Converting the values to decimal numbers
27 3/8 - 2 1/2
27.375 - 2.5 = 24.875
The closing value is US$ 24.875