SOLUTION: The price of a stock dropped 20% in one month. The following month it's price increased by 20%. Is the stock above or below it's starting price?

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Question 1142660: The price of a stock dropped 20% in one month. The following month it's price increased by 20%. Is the stock above or below it's starting price?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let +p+ = the beginning price
+p+-+.2p+=+.8p+ = price after 1 month
+.8p+%2B+.2%2A.8p+=+1.2%2A.8p+
+1.2%2A.8p+=+.96p+
The stock is 4% below its starting price