Question
Riley bought shares worth £7000 . a) After one month, their value had increased by 14% . How much were they worth after one month? b) After two months, this new value had decreased by 15% . How much were they worth after two months? Give your answers in pounds (£) .
Answer
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(216 Votes)
Aria
Elite · Tutor for 8 years
Answer
1. £79802. £6783
Explanation
1. To find out how much the shares were worth after one month, we need to calculate the increase in their value. An increase of 14% means the shares are now worth 114% (or 1.14 times) of their original value. So, £7000 multiplied by 1.14 gives £7980.2. To find out the value of the shares after two months, we need to calculate the decrease from the new value. A decrease of 15% means the shares are now worth 85% (or 0.85 times) of their value after the first month. So, £7980 multiplied by 0.85 gives £6783.