# Math

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

• Math -

Ending value is slightly lower.

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

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

• Math -

x(.95)(1.05)/x
= .95(1.05) = .9975

It will be 99.75% of its initial value

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