Math Problem Statement

Evan invested $2500 in the stock market. Four months later, the value of the investment dropped to $2248. Find the average monthly change in the value of the investment.

Solution

The problem states:

Evan invested $2500 in the stock market. Four months later, the value of the investment dropped to $2248. Find the average monthly change in the value of the investment.

Solution:

To find the average monthly change, we calculate the total change in value and then divide it by the number of months:

  1. Initial value: $2500

  2. Final value: $2248

  3. Total change: 25002248=2522500 - 2248 = 252 The investment decreased by $252 over 4 months.

  4. Average monthly change: 2524=63\frac{252}{4} = 63 So, the average monthly change in value is a decrease of $63.

Would you like more details or further explanation?


Here are some related questions for deeper understanding:

  1. How do you calculate the percentage decrease in the value of the investment?
  2. If the investment continued decreasing at the same rate, what would its value be after 6 months?
  3. Can the average change be positive if the investment had increased?
  4. How would the solution change if Evan invested more money halfway through the 4 months?
  5. How does this concept apply to real-world investments over time?

Tip: Always track how long investments are held to accurately measure gains or losses.

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Math Problem Analysis

Mathematical Concepts

Algebra
Rate of Change
Arithmetic

Formulas

(Initial Value - Final Value) / Time Period

Theorems

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Suitable Grade Level

Grades 6-8