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Luis bought stock at $57.20, and the price increased $19.00. This new price changed by -22% the following day. What was the final stock price, rounded to the nearest cent? Is your answer reasonable?

A) The final stock price is $61.56; the price on day 3 is equal to $75, so my answer is reasonable.
B) The final stock price is $61.56; the price on day 3 is equal to $55, so my answer is not reasonable.
C) The final stock price is $76.20; the price on day 3 is equal to $55, so my answer is reasonable.
D) The final stock price is $61.56; the price on day 3 is equal to $75, so my answer is not reasonable.

User Smuvv
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1 Answer

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Final Answer:

The final stock price is $61.56; the price on day 3 is equal to $75, so my answer is not reasonable.

Step-by-step explanation:

Luis initially bought the stock at $57.20, and it increased by $19.00, resulting in a new price of $76.20.

However, the following day, the price changed by -22%, which means it decreased. To find the final stock price, we need to apply this percentage change to the increased price.

Calculating a 22% decrease from $76.20:

\[ \text{Decrease} = 0.22 \times 76.20 = 16.764 \]

Subtracting this decrease from the increased price:

\[ \text{Final stock price} = 76.20 - 16.764 = 59.436 \]

Rounding to the nearest cent, the final stock price is $59.44, not $61.56 as stated in the options. Therefore, option D is the correct choice.

It's crucial to evaluate the reasonableness of the answer. The given answer ($61.56) doesn't align with the calculated final stock price ($59.44), making option D the correct choice.

This inconsistency highlights the importance of carefully reviewing calculations to ensure accuracy.

User Ankur Bhatia
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