Question

On Monday, a company stock closed at a price of $30.80 per share. On Tuesday, it increased by $1.20 per share. On Wednesday, it fell by 6.25%. On Thursday, it fell by another 4%, and on Friday, it increased by 2.5%. What is the net change in the stock price from Monday to Friday?

Answer 1

I don't understand this

Answer 2

Go step by step.

On Monday, it was $30.80 per share. net = $30.80
Tuesday, it increased by 1.20 per share. net = 30.80 + 1.20
On Wednesday, it decreased by 6.25 percent. net = 0.9375(30.80 + 1.20)
On thurs, it fell by another 4 percent. net = 0.96(0.9375(30.80+1.20))
On friday, it increased by 2.5%. net = 1.025(0.96(0.9375(30.80+1.20)))

So by the time friday comes, the final price is something like this:

\((1.025(0.96(0.9375(30.80+1.20))) \)

Calculate that. But that isn't the answer, it is asking for the net change. So substract the value of Monday from Friday