A certain stock starts the day at $273/8 per share. If it drops $21/2 during the day, what is its closing value?.

The closing value is the final price at which a security is traded on a certain transaction day.

It is computed by:

First, knowing how many 1/8's in 1/2 = there is 4.

solution: 1/2 divided by 1/8

Then deduct the starting price to the dropping price

27 - 2 = 25

Then deduct the 3/8 to the 4 you have computed earlier

4/8 - 3/8 = 1/8

The closing price is

25 - 1/8 = 24.88