Problema Solution
The price of a stock appreciated by 17.6% of its value last month and then depreciated by 17.6% this month. By what percent did the stock appreciate or depreciate over the 2-month period? Express your answer as a positive or negative value based on the direction of the percentage change.
Answer provided by our tutors
let 'x' represent the value of the stock two months ago
price of a stock appreciated by 17.6% of its value last month
x + 0.176x
and then depreciated by 17.6% this month
(x+0.176x) - 0.176(x+0.176x)
simplifying we have:
0.969024x
1 - 0.969024 = 0.030976
the change of the stock over the two month period is represented by approximately -3.1%