Question

30 points!!! (Please show work)

If you bought a stock last year for a price of $55, and it has gone down 8.5% since then, how much is the stock worth now, to the nearest cent?

Answer 1

Answer:

$50.33 (Rounding up from $50.325.  If you must use the convention of rounding to the nearest even number then use $50.32.)

Step-by-step explanation:

The value has fallen 8.5%, so it is now only (100-8.5)% = 91.5% of the original value.

So the current value is:

91.5% of $55

= 0.915 x $55

= $50.325

which when rounded is either $50.32 or $50.33, depending on your conventions.