Asked by Brandon Heyman on Jun 02, 2024
Verified
A stock valued at $75 decreased by 20% and then increased by 20%. What was the value of the stock after the increase?
A) $75
B) $72
C) $60
D) $90
E) $80
Stock Valued
The process of determining the intrinsic value of a stock based on predictions of future earnings and the company's overall financial health.
Increased
An upward adjustment in quantity, size, intensity, or the like.
- Comprehend the effect of percentage fluctuations on the value of investments.
Verified Answer
MW
Michayla WashingtonJun 07, 2024
Final Answer :
B
Explanation :
The stock first decreased by 20% of $75, which is $15, making it $60. Then it increased by 20% of $60, which is $12, making the final value $72.
Learning Objectives
- Comprehend the effect of percentage fluctuations on the value of investments.