select the correct answer.\n\non monday, a company stock closed at a price of $30.80 per share. on tuesday…

select the correct answer.\n\non monday, a company stock closed at a price of $30.80 per share. on tuesday, it increased by $1.20 per share. on wednesday, it fell by 6.25%. on thursday, it fell by another 4%, and on friday, it increased by 2.5%. what is the net change in the stock price from monday to friday?\n\na. -$1.28\nb. -$0.40\nc. $0.40\nd. $2.00

select the correct answer.\n\non monday, a company stock closed at a price of $30.80 per share. on tuesday, it increased by $1.20 per share. on wednesday, it fell by 6.25%. on thursday, it fell by another 4%, and on friday, it increased by 2.5%. what is the net change in the stock price from monday to friday?\n\na. -$1.28\nb. -$0.40\nc. $0.40\nd. $2.00

Answer

Explanation:

Step1: Calculate the stock price on Tuesday

Add the increase of $$1.20$ to the Monday closing price. $$P_{Tue} = $30.80 + $1.20 = $32.00$$

Step2: Calculate the stock price on Wednesday

Subtract the $6.25%$ decrease from the Tuesday price. $$P_{Wed} = $32.00 \times (1 - 0.0625) = $32.00 \times 0.9375 = $30.00$$

Step3: Calculate the stock price on Thursday

Subtract the $4%$ decrease from the Wednesday price. $$P_{Thu} = $30.00 \times (1 - 0.04) = $30.00 \times 0.96 = $28.80$$

Step4: Calculate the stock price on Friday

Add the $2.5%$ increase to the Thursday price. $$P_{Fri} = $28.80 \times (1 + 0.025) = $28.80 \times 1.025 = $29.52$$

Step5: Calculate the net change

Subtract the Monday price from the Friday price. $$\text{Net Change} = $29.52 - $30.80 = -$1.28$$

Answer:

A. -$1.28