Question

A stock increases in value by 55%, and then decreases in value by 25%. What is the overall percent change of the stock?

Give your answer accurate to at least one decimal place.

Answer 1

Overall percent change of stock is increase by 16.3%

Explanation:

Given:

A stock increases in value by 55%

Then the value decreases by 25%

To find the overall percent change of the stock.

Solution:

Let the initial value of the stock be = $100

Increase in value by 55% will be =
`0.55* \$100=\$55`

The new value after increase =
`\$100+\$55=\$155`

Decrease in value of 25% will be =
`0.25* \$155=\$38.75`

New value after decrease =
`\$155-\$38.75= \$116.25`

Overall change in value =
`\$116.25-\$100=\$16.25`

The over all percent change can be given as:

⇒
`(Change\ in\ value)/(Original\ value)* 100`

⇒
`(\$16.25)/(\$100)* 100`

⇒
`16.25\%\approx 16.3\%`

Overall percent change of stock is increase by 16.3%