Question

An investor has an account with stock from two different companies. Last year, her stock in Company A was worth $2000 and her stock in Company B was worth $5720. The stock in Company A has decreased 12% since last year and the stock in Company B has decreased 15%. What was the total percentage decrease in the investor's stock account? Round your answer to the nearest tenth (if necessary).

Answer 1

14.2%

Explanation:

1. Find the new cost for Stock A:

2000x0.88=1760

2. Find the new cost for Stock B:

5720x0.85=4862

3. Find total sum of the original stocks:

2000+5720=7720

4. Find total sum of the new stocks:

1760+4862=6622

5. Find the decrease:

7720(1-x)=6622

Solve for x

x=14.2