Math Problem Statement

The price per share of a popular stock is crashing hard! An hour after trading opens, the share price is $18,900, but by the 2nd hour it drops to $1890, and it drops again to $189 an hour later. By the 4th hour, the price is down to $18.9 per share. How many dollars would each share cost after another hour?

Solution

The uploaded image describes a sequence problem involving the price of a stock that decreases hourly, forming a geometric sequence. Let's break down and solve the problem.

Recognize and Describe:

  • The sequence starts at 18,900 dollars.
  • Each term is divided by 10, meaning the common ratio (r) is 110=0.1\frac{1}{10} = 0.1.

Classify:

  • Since each term is obtained by multiplying the previous term by a constant ratio (0.1), the sequence is geometric.

Recursive Formula:

  • The first term is g1=18,900g_1 = 18,900.
  • The recursive formula is: gn=gn1rg_n = g_{n-1} \cdot r where r=0.1r = 0.1.

Predict the Next Term:

The fourth term is 18.918.9. To find the fifth term: g5=g40.1=18.90.1=1.89g_5 = g_4 \cdot 0.1 = 18.9 \cdot 0.1 = 1.89

Answer:

After another hour, the stock price would be $1.89 per share.

Would you like a detailed breakdown or have questions? Here are some related questions for practice:

  1. How would the formula change if the common ratio was 0.50.5 instead of 0.10.1?
  2. Write the explicit formula for the nn-th term of this sequence.
  3. How many hours would it take for the price to drop below $0.01\$0.01?
  4. What is the sum of the first five terms of this sequence?
  5. If the initial stock price was $10,000 and the common ratio remained the same, what would be the price after 5 hours?

Tip: Always verify the common ratio in geometric sequences by dividing any term by its preceding term.

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Math Problem Analysis

Mathematical Concepts

Geometric Sequences
Recursive Formulas
Ratios

Formulas

Recursive formula: g_n = g_(n-1) * r
Explicit formula for geometric sequence: g_n = g_1 * r^(n-1)

Theorems

Properties of Geometric Sequences

Suitable Grade Level

Grades 8-10