Question

If the price of a stock goes from $4.25 per share to $6.50 per share, by what percent has the

value of the stock increased? Round to the nearest whole percent.

Answer 1

Answer: 53% increase

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Work Shown:

A = old value = 4.25

B = new value = 6.50

C = percent change

C = 100*(B-A)/A

C = 100*(6.50 - 4.25)/4.25

C = 52.94%

C = 53%

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notes:

The positive C value indicates we have a percent increase. If C was negative, then we'd have a percent decrease.

The formula shown above for C is basically having us compute the difference in price (B-A) and then we divide that difference over the original price A. This computes the decimal form of the answer. The "100*" tacked out front will convert from decimal to percent form.

If you took 52.94% of the original price 4.25, then you would get 0.5294*4.25 = 2.24995 which rounds to 2.25; this is the amount the price increases so we add this to 4.25 and we get 4.25+2.25 = 6.50 which is the new share price.

Answer 2

53%

Explanation:

subtract 6.5 - 4.25 = 2.25

then divide 2.25/4.25 = .529

times answer by 100 = 53% rounded