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Mathematics 9 Online
OpenStudy (anonymous):

A stock decreases in value by 20 percent. By what percent must the stock price increase to reach its former value?

OpenStudy (anonymous):

if it decreases by 20% it is now 80% of its former value solve \[.8x=1\] for x get \[x=1.25\] so it has to increase by 25%

OpenStudy (anonymous):

ok I understand d everything but what im stuck on is how and why are we dividing the .8 by 1

OpenStudy (anonymous):

i was using .8 as 80% and 1 as 100%

OpenStudy (anonymous):

here is a trick you can use. since it obviously doesn't matter what the original stock was worth, you can pick a number and compute with that number. a good number to pick is 100 if it starts at $100 and loses 20% of its value, then it goes to $80 now if you want it to come back up to $100 you have to add $20 and $20 is 25% of $80

OpenStudy (anonymous):

oh ok I got it now thxx satetillite

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