Math Problem Statement
Solution
The question in the image is:
"The value of your stock investment in a certain company decreased 30% over the last year. If the value of your stock investment is $4,000 today, then what was the value of your stock investment a year ago? Round your answer to the nearest cent, if necessary."
To solve this problem, we can work backward from the current value ($4,000) and account for the 30% decrease.
Let represent the value of the investment a year ago.
If the investment decreased by 30%, then the value today is 70% (or 0.70) of what it was a year ago. This gives the equation:
To find , we divide both sides by 0.70:
So, the value of the stock investment a year ago was $5,714.29.
Would you like more details on the solution or have any further questions?
Here are 5 related questions:
- What is the formula to calculate percentage decrease or increase in investments?
- How do you calculate future value based on percentage growth over time?
- What would the value be after a further 20% decrease this year?
- How would you reverse a percentage decrease if the percentage changes?
- How can compound percentage changes affect investment over multiple years?
Tip: When reversing a percentage decrease, always divide the current value by (1 - percentage decrease as a decimal).
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Math Problem Analysis
Mathematical Concepts
Percentage Decrease
Algebra
Formulas
Current value = Previous value × (1 - Percentage decrease)
Previous value = Current value / (1 - Percentage decrease)
Theorems
Basic Percentage Theorem
Suitable Grade Level
High School (Grades 9-12)
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