Question

Luis bought stock at $75.60. The next day, the price increased by $13.30. This new price changed by -5 3/4%. What was the final stock price, rounded to the nearest cent? Is your answer reasonable? Complete the explanation.

a) $80.53
b) $88.90
c) $85.45
d) $79.75

Answer 1

The final stock price is $231.30. None of the given answer choices are reasonable.

Step-by-step explanation:

To find the final stock price, we need to determine the percentage change and apply it to the initial price. The percentage change is given as -5 3/4%, which can be converted to -5.75%. Since the price increased by $13.30, we can set up the equation: -5.75% * x = $13.30, where x is the final stock price. Solving for x, we get x = $13.30 / -5.75% = $231.30.

The final stock price, rounded to the nearest cent, is $231.30, which is not among the provided answer choices. Therefore, none of the given answer choices are reasonable.