Math Problem Statement
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:
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Initial value: $2500
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Final value: $2248
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Total change: The investment decreased by $252 over 4 months.
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Average monthly change: 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:
- How do you calculate the percentage decrease in the value of the investment?
- If the investment continued decreasing at the same rate, what would its value be after 6 months?
- Can the average change be positive if the investment had increased?
- How would the solution change if Evan invested more money halfway through the 4 months?
- 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
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