Asked by ed thelson Lacombe on May 13, 2024
Verified
A stock valued at $150 increased by 25% and then decreased by 25%. What was the value of the stock after the decrease?
A) $140.63
B) $150.00
C) $187.50
D) $112.50
E) $125.00
Percent Decrease
A measure of how much a quantity has decreased in percentage terms compared to its previous value.
Percent Increase
The process of determining the ratio of the increase in a quantity to the original amount, expressed as a percentage.
Stock Value
The price of a single share of a company's stock, representing ownership in the company and its potential profitability.
- Understand the impact of percentage increases and decreases on investment value.
Verified Answer
GD
Gulcin DurutasMay 13, 2024
Final Answer :
A
Explanation :
The stock first increases by 25% of $150, which is $37.50, making it $187.50. Then it decreases by 25% of $187.50, which is $46.875, resulting in a final value of $140.625, rounded to $140.63.
Learning Objectives
- Understand the impact of percentage increases and decreases on investment value.