Question

Unfortunately, Mark’s share of GUAC stock lost another $20.88 in value each month for the next 3 months. If the previous share price of GUAC was $348, and the stock lost an equal amount each month, what was the average percentage change each month?

Answer 1

Answer:

The average percent change each month will be = 6.4%

Step-by-step explanation:

In the first month, the price was $348 and the decrease in value is $20.88.

So, the percent change in value is $\frac{20.88}{348}\times 100\% = 6\%$.

Now, in the second month, the price was $(348 - 20.88) = $327.12 and the decrease in value is $20.88.

So, the percent change in value is $\frac{20.88}{327.12}\times 100\% = 6.38\%$.

Again, in the third month, the price was $(327.12 - 20.88) = $306.24 and the decrease in value is $20.88.

So, the percent change in value is $\frac{20.88}{306.24}\times 100\% = 6.82\%$

Therefore, the average percent change each month will be = $\frac{6 + 6.38 + 6.82}{3} = 6.4\%$ (Answer)