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A stock investment went up $25\%$ in 2006. Starting at this increased value, what percent would it have to go down in 2007 to be back to its original price at the beginning of 2006?

 Nov 3, 2019
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Say 'x' is the value before it goes up

 

it goes up 25 %    then it equals   1.25 x

then it goes down to the original value of x

 

1.25  x   -  (%1.25 x) = x      divide through by x

1.25 - %1.25  = 1

1 - % = 1 / 1.25

% = .2           20 percent  

 Nov 3, 2019
edited by ElectricPavlov  Nov 3, 2019

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