Problema Solution

In 2002, the price of General Electric's stock dropped 8%.

p= price of General Electric stock.

What is the price of General Electric stock after the drop?

Answer provided by our tutors

p is price before drop

an 8% decrease is a drop of

0.08*p

Price after the drop is

pa = p - 0.08p

you can simplify

pa = p*(1-0.08)

pa = 0.92*p