Posted by **Cade** on Friday, November 20, 2009 at 9:59pm.

A share of stock loses 5% in value and then gains 5% . How does its ending value compare with its initial value?

- Math -
**PsyDAG**, Friday, November 20, 2009 at 10:05pm
Ending value is slightly lower.

For example, $100 - 5% = $100 - $5 = $95

But 5% gain from $95 will not be as much.

- Math -
**Reiny**, Friday, November 20, 2009 at 10:43pm
x(.95)(1.05)/x

= .95(1.05) = .9975

It will be 99.75% of its initial value

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