Problema Solution
You made an investment in stocks. it went up 5% after one day, however, that same stock went down 3% the following day. what was your overall percentage of profit at the end of the second day?
Answer provided by our tutors
x = the investment in stocks
after it went up 5% the new value of the stock was
x + 0.05x = 1.05x
after it went down 3% the new value of the stock is:
1.05x - 0.03*1.05x = 0.97*1.05x = 1.0185x
the profit is (1.0185x - x)/x = 0.0185 or 1.85%