A share of ABC stock was worth $60 in 2005 and only worth $45 in 2010.
Find the multiplier and the percent decrease.
To Find The Multiplier:
60•xˆ5=45 (Sixty multiplied by X to the Fifth power equals Forty-Five)
xˆ5=45/60 (X to the Fifth power equals Forty-five over sixty)
x=5√45/60 (X equals the Fifth root of Forty-five over sixty)
x=0.944
To find the multiplier, we need to calculate the ratio of the final value to the initial value. In this case, the final value is $45 and the initial value is $60.
Multiplier = Final value / Initial value
Multiplier = $45 / $60
Multiplier = 0.75
To calculate the percent decrease, we subtract the final value from the initial value, divide by the initial value, and then multiply by 100.
Percent decrease = ((Initial value - Final value) / Initial value) * 100
Percent decrease = (($60 - $45) / $60) * 100
Percent decrease = ($15 / $60) * 100
Percent decrease = 0.25 * 100
Percent decrease = 25%
Therefore, the multiplier is 0.75 and the percent decrease is 25%.
To find the multiplier, we can use the formula:
Multiplier = (New Value / Old Value)
In this case, the old value is $60 (in 2005) and the new value is $45 (in 2010).
Multiplier = (45 / 60) = 0.75
So, the multiplier is 0.75.
To find the percent decrease, we can use the formula:
Percent Decrease = (1 - Multiplier) * 100
Percent Decrease = (1 - 0.75) * 100 = 0.25 * 100 = 25%
Therefore, the percent decrease is 25%.
60 x = 45
x = .75
1.00 - .75 = .25 which is 25% down