On Monday a stock market index goes up 5.00%. On Tuesday, it goes down 5.00%. What is the net percentage change in the index for the two days?
on monday the index goes up 5%, meaning the price is 105% of initial price.
on tuesday it goes down 5%, so the price is 95% of monday price
95% x (105% initial price) = 99.75% initial price
net percentage = 0.25% drop