A stock increased in value by 7% on Wednesday and then decreased in value by 4% on Thursday. What was the net percentage increase in the value of the stock from the end of the day on Tuesday to the end of the day on Thursday? A)2.72% B)2.88% C)3.00% D)3.28%
I wonder if this question must hypothesize that the value on Tuesday should be an actual value, or we can hypothesize x which is the value on Tuesday. Thank you so much. Plz help > <
To solve this problem, we can assume an initial value for the stock on Tuesday. Let's assume the stock has an initial value of $100.
On Wednesday, the stock increased in value by 7%, which means it gained 7% of its initial value of $100.
7% of $100 is (7/100) * $100 = $7.
After the increase, the value of the stock on Wednesday became $100 + $7 = $107.
On Thursday, the stock decreased in value by 4%, which means it lost 4% of its value on Wednesday, which was $107.
4% of $107 is (4/100) * $107 = $4.28.
After the decrease, the value of the stock on Thursday became $107 - $4.28 = $102.72.
To find the net percentage increase from the end of the day on Tuesday to the end of the day on Thursday, we need to calculate the percentage increase from $100 (Tuesday) to $102.72 (Thursday).
The percentage increase is (100/100) * ($102.72 - $100) = 2.72.
Therefore, the net percentage increase in the value of the stock from the end of the day on Tuesday to the end of the day on Thursday is 2.72%.
The answer is option A) 2.72%.
To calculate the net percentage increase in the value of the stock from the end of the day on Tuesday to the end of the day on Thursday, we will first assume a value for the stock on Tuesday. Let's use "x" as the value on Tuesday.
On Wednesday, the stock increased in value by 7%, so the value on Wednesday would be x + 0.07x = 1.07x.
On Thursday, the stock decreased in value by 4%. So, the value on Thursday would be 1.07x - 0.04(1.07x) = 1.07x - 0.0428x = 1.0272x.
To find the net percentage increase, we need to calculate the difference between the value on Thursday and the value on Tuesday and convert it to a percentage.
The formula to calculate the net percentage increase is: ((end value - start value) / start value) * 100.
Substituting the values, we have:
((1.0272x - x) / x) * 100 = (0.0272x / x) * 100 = 2.72%.
Therefore, the net percentage increase in the value of the stock from the end of the day on Tuesday to the end of the day on Thursday is 2.72%.
So, the correct answer is A) 2.72%.