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A man owns stock valued at 2900 One day the stock drops by 6% and then gains the same percentage back the next day.How much money is the stock valued at the end of the second day? square

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A man owns stock valued at 2900 One day the stock drops by 6%  and then gains the same percentage
back the next day.How much money is the stock valued at the end of the second day?
 square

A man owns stock valued at 2900 One day the stock drops by 6% and then gains the same percentage back the next day.How much money is the stock valued at the end of the second day? square

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TegwenProfessional · Tutor for 6 years

Answer

### \$2899.56

Explain

## Step 1: Calculate the stock value after the 6% drop<br />### The stock value drops by 6%, so we multiply the initial value by \(1 - 0.06\).<br />\[<br />\text{New value after drop} = 2900 \times (1 - 0.06) = 2900 \times 0.94 = 2726<br />\]<br /><br />## Step 2: Calculate the stock value after the 6% gain<br />### The stock value then gains 6%, so we multiply the new value by \(1 + 0.06\).<br />\[<br />\text{Final value after gain} = 2726 \times (1 + 0.06) = 2726 \times 1.06 = 2899.56<br />\]
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