Question

serena purchased 275 ethereum coins two years ago at $ 155 per coin. as of today, each coin is worth $ 94. what is serenas approximate capital loss percentage to the nearest percent? \\(\frac{(\text{current price} \times \text{# of shares}) - (\text{initial price} \times \text{# of shares})}{\text{initial price} \times \text{# of shares}}\\) \\(\boldsymbol{\text{a}}\\) \\(-39\\%\\) \\(\boldsymbol{\text{b}}\\) \\(-43\\%\\) \\(\boldsymbol{\text{c}}\\) \\(-47\\%\\) \\(\boldsymbol{\text{d}}\\) \\(-51\\%\\)

Explanation:

Step1: Identify values for formula

Initial price per coin = $155, Current price per coin = $94, Number of coins = 275.
The formula for capital loss percentage is $\frac{(\text{current price} \times \text{\# of shares}) - (\text{initial price} \times \text{\# of shares})}{\text{initial price} \times \text{\# of shares}}$.
We can factor out the number of shares (275) from numerator and denominator, so the formula simplifies to $\frac{\text{current price} - \text{initial price}}{\text{initial price}}$.

Step2: Substitute values into simplified formula

Substitute current price = 94 and initial price = 155 into the formula: $\frac{94 - 155}{155}$.

Step3: Calculate the numerator and then the fraction

First, calculate the numerator: $94 - 155 = -61$.
Then, calculate the fraction: $\frac{-61}{155} \approx -0.3935$.

Step4: Convert to percentage

Multiply by 100 to get the percentage: $-0.3935 \times 100 \approx -39\%$.

Answer:

A. -39%