From 1990 to 1995, the value of one share of stock of XYZ corporation increased by 25%. if the value was D dollars in 1995, what was the value in 1990?
To solve this problem, we can use the concept of inverse percentage change. We know that the value of one share of stock increased by 25% from 1990 to 1995.
Step 1: Let's represent the value of one share of stock in 1990 as V.
Step 2: We know that the value increased by 25% from 1990 to 1995. To find the value in 1995, we'll need to increase V by 25%.
Mathematically, we have:
Value in 1995 = V + (25/100) * V
Step 3: We are given that the value in 1995 is D dollars. So, we can set up the equation:
D = V + (25/100) * V
Step 4: Now, we can solve this equation to find the value of V.
First, let's simplify the right side of the equation:
D = V + (1/4) * V
D = (5/4) * V
Step 5: To isolate V, we need to divide both sides of the equation by (5/4):
V = D / (5/4)
Step 6: Simplifying further, we invert and multiply:
V = D * (4/5)
Therefore, the value of one share of stock in 1990 (V) can be calculated as V = D * (4/5).