Question

Luis bought stock at $68.20. The next day, the price increased by $19.20. This new price changed by -2 3/4%. What was the final stock price, rounded to the nearest cent? Is your answer reasonable?

a) $85.67
b) $85.93
c) $85.42
d) $85.15

Answer 1

Luis bought stock at $68.20, which increased by $19.20, to $87.40. After a -2 3/4% change, the final stock price, rounded to the nearest cent, is $85.00, which is not one of the given options.

Step-by-step explanation:

The question involves calculating the final stock price after a price increase and a subsequent percentage decrease. Luis originally bought stock at $68.20. The next day, the price increased by $19.20, making the new price $68.20 + $19.20 = $87.40. Following this, the price changed by -2 3/4% (which is -0.0275 in decimal form). To find the final price, we multiply the percentage decrease by the new price and subtract from the new price:

• Price decrease = $87.40 × 0.0275 = $2.4035
• Final stock price = $87.40 - $2.4035 = $84.9965

Rounded to the nearest cent, the final stock price is $85.00, which is not an option given. Therefore, there might be an error in the options or in the question as posed.