SOLUTION: a stock decreases in value by 20 percent by what percent must the stock price increase to reach its former value?

Algebra ->  Percentage-and-ratio-word-problems -> SOLUTION: a stock decreases in value by 20 percent by what percent must the stock price increase to reach its former value?      Log On


   

Question 300960: a stock decreases in value by 20 percent by what percent must the stock price increase to reach its former value?
Answer by josmiceli(19441) About Me  (Show Source):
You can put this solution on YOUR website!
Let v = stock's original value
.8v = stock's value minus 20%
Let x%2F100 = percent that it must increase
given:
%28x%2F100%29%2A%28.8v%29+%2B+.8v+=+v
.8v%2A%28x%2F100+%2B+1%29+=+v
---------------
x%2F100+%2B+1+=+1%2F.8
x%2F100+=+1%2F.8+-+1
x%2F100+=+1.25+-+1
x+=+100%2A.25
x+=+25
The stock must increase by 25%