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44 votes
If a stock valued at $40 per share increases by 20% and then decreases by 25% what is the resulting value of the stock?

User Omkar Patade
by
2.7k points

2 Answers

27 votes
27 votes

Answer:

The resulting value of the stock is $36.

Explanation:

First, we need to find out what 20% of $40 is.

40 x 0.20 = 8

40 + 2 = $48

Therefore, the stock value, when increased, is $48.

Now, we need to see what 25% of $48 is.

48 x 0.25 = 12

48 - 12 = $36

Therefore, the resulting value of the stock is $36.

User DU Jiaen
by
3.4k points
10 votes
10 votes

Answer:

$36

Explanation:

The stock value of $40 increased by 20%.

Increased value

= 20% of $40

= (20/100) × $40

= $800/100

= $8

New stock value

= Initial value + increased value

= $40 + $8

= $48

Then, the value decreased by 25%.

Decreased value

= 25% of $48

= (25/100) × $48

= $1200/100

= $12

New stock value

= Initial value + decreased value

= $48 - $12

= $36

So, the resulting stock value is $36.

User Andbamnan
by
2.6k points