ACT SAT Prep How to determine the price increase and decrease of a value

The video tutorial explains how to calculate the net earnings or loss from stock transactions. It begins with a stock price increase of 20%, followed by a decrease of 20%. The instructor demonstrates how to calculate these changes using percentages and decimals, starting with an initial stock value of $250. After the price increase, the stock value rises to $300, but after the decrease, it falls to $240, resulting in a net loss of $10. The tutorial emphasizes the importance of understanding percentage calculations in stock market transactions.

What is the initial value of the stock before any changes?

• $200

• $250

• $300

• $350

How much does the stock value increase after a 20% rise?

• $40

• $50

• $70

• $60

What is the new stock value after a 20% increase?

• $325

• $275

• $250

• $300

How much does the stock value decrease after a 20% fall?

• $60

• $50

• $80

• $70

What is the final stock value after both the increase and decrease?

• $250

• $240

• $230

• $260