The value of investments in the stock market change daily. Suppose you buy a stock for $1500. It decreases in value by 5% and then rises 7%. What is the new value? (Round to the nearest cent as needed.)
1500 * 0.95 * 1.07 = 1524.75
To determine the new value of the stock after it decreases by 5% and then rises by 7%, we can follow these steps:
1. Start with the initial value of the stock, which is $1500.
2. Calculate the decrease in value by multiplying the initial value by the percentage change. In this case, to find the decrease, we multiply $1500 by 5% as a decimal: 1500 * 0.05 = $75.
3. Subtract the decrease from the initial value to find the new value after the decrease. In this case, $1500 - $75 = $1425.
4. Calculate the increase in value by multiplying the new value after the decrease by the percentage change. To find the increase, we multiply $1425 by 7% as a decimal: 1425 * 0.07 = $99.75.
5. Add the increase to the new value after the decrease to find the final value. In this case, $1425 + $99.75 = $1524.75.
Therefore, the new value of the stock after it decreases by 5% and then rises by 7% is approximately $1524.75.