Question

A man owns stock valued at $2400. One day the stock drops by 8%, and then gains the same percentage back the next day. How much money is the stock valued at the end of the second day?

Answer 1

If we convert 8% into a decimal we get 0.08,

So,

0.08x2400 = 192

Now we have to subtract $192 since that's how much it dropped.

2400-192 = $2208

Now if we add the same percentage (8%), we do the same thing from step 1.

8/100 = 0.08

2208x0.08 = 176

Now we add,

2208 + 176 = $2384