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
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October 30th, 2009 at 3:17 am
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
References :
October 30th, 2009 at 3:30 am
5%of 100=5
on Monday 100 goes up 5=105
5%of 105=5.25
on tuesday 105 goes down 5.25=99.75
So the net percent change is 100-99.75=0.25
References :