Sally owns 145 shares of stock in a property management company. The current price of the stock is $42.17 per share.
If the price of the stock decreases to $35.94 in the next month, how much did the value of Sally's shares decrease over the month?
$903.35
$925.78
$947.68
$968.55
903.35
145 * (42.17 - 35.94)
To calculate the decrease in the value of Sally's shares, we need to find the difference between the initial value and the final value of her shares.
Initial value = Number of shares * Initial price per share
Final value = Number of shares * Final price per share
Plug in the given values:
Initial value = 145 * $42.17 = $6,117.65
Final value = 145 * $35.94 = $5,202.30
The decrease in the value of Sally's shares over the month is:
Initial value - Final value = $6,117.65 - $5,202.30 = $915.35
Therefore, the value of Sally's shares decreased by $915.35 over the month, which is closest to $925.78. So, the correct answer is $925.78.
To calculate the decrease in the value of Sally's shares over the month, we can use the formula:
Decrease in value = (Initial price - Final price) * Number of shares owned
Given:
Initial price = $42.17 per share
Final price = $35.94 per share
Number of shares owned = 145
Plugging in these values into the formula:
Decrease in value = ($42.17 - $35.94) * 145
Now let's calculate the decrease:
Decrease in value = $6.23 * 145
Calculating the product:
Decrease in value = $903.35
Therefore, the value of Sally's shares decreased by $903.35 over the month. So the correct answer is $903.35.