In 2007, Donald's stock portfolio decreased in value by 25%. In 2008, his stock portfolio decreased in value by another 40%. What percentage gain is required in 2009 for Donald's stock portfolio to return to the value it had in the beginning of 2007? (Round to nearest tenth of a percent.)
.6(.75) = .225
1/.225 = 444.4%
All i know is the answer is 122.2%, i don't know what kind of problem this is or how to solve it haha
To find the percentage gain required in 2009 for Donald's stock portfolio to return to its 2007 value, we first need to calculate the overall decrease in value over the two years.
The decrease in 2007 is 25%, so his portfolio's value is only 75% of its original value.
The decrease in 2008 is 40% of the remaining 75%. To calculate the remaining value after the 2008 decrease, we multiply 75% by (100% - 40%) = 60%.
So, the remaining value after 2008 is 0.75 * 0.60 = 0.45, or 45% of the original value.
To find the percentage gain required in 2009, we divide the remaining value by the original value and subtract it from 100%:
(1 - 0.45) * 100% = 55%.
Therefore, a 55% gain in 2009 is required for Donald's stock portfolio to return to its 2007 value.