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The price of a stock decreased by $20\%$ in 2001, and then decreased by $20\%$ in 2002. What percent increase in 2003 will restore the price to its value at the beginning of 2001? Express your answer to the nearest hundredth.

 Sep 1, 2022
 #1
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Original price   x

 

Price in 2001   0.8*x

 

Price in 2002  0.8*0.8*x

 

Price in 2003    f*0.8*0.8*x = x  so f = 1/(0.8*0.8) = 1.5625  

 

I'll let you work out the percentage increase from here.

 Sep 1, 2022

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