Solve the problem.When the Scott Pearson Company's stock increased in value from $100.00 per share to $125.00 per share, the company reported to its shareholders that their stocks had increased in value by The stock price remained fixed at $125 for a few months, but then it fell back down to $100.00 per share. At that time, the Scott Pearson Company reported to the shareholders that the stock had decreased by Since the price increase and decrease are exactly the same, should not the percent increase and the percent decrease be equal? Explain.

Question

What will be an ideal response?

Answer 1

No. The percent increase and percent decrease formulas have the same value in the numerator  but have different values in the denominator ($100 for the percent increase calculation; $125 for the percent decrease calculation).