If you bought a stock last year for a price of $57, and it has gone down 5% since then, how much is the stock worth now, to the nearest cent?

Question

If you bought a stock last year for a price of $57, and it has gone down 5% since then, how much is the stock worth now, to the nearest cent?

Answer 1

stock worth $57 last year

now it's down 5%

what's it worth now?

it went down $2.85 = .05(57)

it's now worth 57-2.85 = $54.15

or more directly

57(1-.05) = 57(.95) = $54.15