Question

An investor has an account with stock from two different companies. Last year, her stock in Company A was worth $5800 and her stock in Company B was worth $7470. The stock in Company A has decreased 1% since last year and the stock in Company B has decreased 20%. What was the total percentage decrease in the investor's stock account? Round your answer to the nearest tenth (if necessary).

Answer 1

To find the total percentage decrease, we first need to find the new values of the stocks in Company A and Company B after the decrease.

The new value of the stock in Company A is: $5800 - (1% \times $5800) = $5742

The new value of the stock in Company B is: $7470 - (20% \times $7470) = $5976

To find the total value after the decrease, we add these two values: $5742 + $5976 = $11718

To find the percentage decrease from the original total value ($5800 + $7470 = $13270) to the new total value ($11718), we use the formula:

percentage decrease = [(original value - new value) / original value] x 100%

percentage decrease = [($13270 - $11718) / $13270] x 100%

percentage decrease = 11.7%

Therefore, the total percentage decrease in the investor's stock account is 11.7%.