Question

An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $7200 and his stock in Company B was worth $3510. The stock in Company A has decreased 24% 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

22.7%

Step-by-step explanation:

Given that last year stock for company A was $7200

The stock for company B last year was worth $3510

Stock in company A decreased by 24%

This means the new value of stock for company A became;

(100-24)/100 *$7200

76/100*$7200

0.76*7200 =$5472

Stock in company B decreased by 20%

This means the new value of stock for company B became;

(100-20)/100 *$3510

80/100*$3510

0.8*$3510

$2808

Original investors stock value was = $7200+$3510 =$10710

New investors stock value is = $5472+$2808=$8280

Decrease in value of stock = $10710-$8280 =$2430

percentage decrease in stock value = decrease in stock/original value of stock *100%

=2430/10710 *100 =22.689

=22.7%