Question

Say that the economy is in a recession, which is causing the value of gold to fall by three percent. If you have gold reserves which were previously worth $8,590, how much value have you lost as a result of this recession, to the nearest cent? a. $590.00 b. $286.33 c. $257.70 d. $250.19

Answer 1

The correct answer option is C. $257.70

Explanation:

The question is on percentage reduction

Given the initial value of gold reserves=$8590

% reduction during recession=3%

New value after reduction;

Δpercentage= 100%-3%=97%

New value of gold= 97/100 × $8590

=$8332.30

Value lost due to recession;

the Initial value of gold- new value of gold

$8590- $8332.30

$257.70

Answer 2

If 100% is 8590$
Than 1% is 85.9$
3% is then 257.7$