Percents: Percent Change
The price of stock decreased by 8% last year and rose by 10% this year. What is the net percentage change in the price of the stock?
Incorrect.
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Correct.
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Plug in the initial price of the stock as $100. Based on this, last year's price after an initial 8% decrease can be calculated as follows:
>$$\text{Last year's price} = $100 - 8\% \text{ of } 100 = $100 - $8 = $92$$.
Now find this year's price after the 10% increase. Remember that the original price is now the new price, which means that the 10% is taken from $92.
>$$\text{This year's price} = $92 + 10\% \text{ of } $92 = $92 + $9.2 = $101.2$$
>$$\displaystyle \text{Net percent change} = \frac{101.2 - 100}{100} \times 100 = 1.2%$$
Hence, this is the correct answer.
Incorrect.
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Did you subtract the 8% decrease from the 10% increase ($$10\% - 8\% = 2\%$$) and apply a 2% increase to the initial price?
Watch out! The 8% decrease is applied to the original price while the 10% increase is applied to last year's price.
Incorrect.
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Incorrect.
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0.2%
0.8%
1.2%
1.6%
2%
