An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $7200 and his stock in Company B was worth $3510. The stock in Company A has decreased 24% since last year and the stock in Company B has decreased 20%. What was the total percentage decrease in the investor's stock account? Round your answer to the nearest tenth (if necessary)

Question

Chemistry

Alexis Reese

31 January, 01:11

An investor has an account with stock from two different companies. Last year, his stock in Company A was worth $7200 and his stock in Company B was worth $3510. The stock in Company A has decreased 24% since last year and the stock in Company B has decreased 20%. What was the total percentage decrease in the investor's stock account? Round your answer to the nearest tenth (if necessary)

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Answers (1)

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Aires · Answer 1

22.7%

Explanation:

Given that last year stock for company A was $7200

The stock for company B last year was worth $3510

Stock in company A decreased by 24%

This means the new value of stock for company A became;

(100-24) / 100 * $7200

76/100*$7200

0.76*7200 = $5472

Stock in company B decreased by 20%

This means the new value of stock for company B became;

(100-20) / 100 * $3510

80/100*$3510

0.8*$3510

$2808

Original investors stock value was = $7200+$3510 = $10710

New investors stock value is = $5472+$2808=$8280

Decrease in value of stock = $10710-$8280 = $2430

percentage decrease in stock value = decrease in stock/original value of stock * 100%

=2430/10710 * 100 = 22.689

=22.7%