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The original selling price of a share of stock was 
d dollars. The selling price for a share of the same stock at a later date was represented by the expression 
1.5(0.05 d). Which description could explain what happened to the price of the share of stock?
The price decreased by 
95% and then increased by 
50%
The price decreased by 
0.95% and then increased by 
150%
The price increased by 
0.5% and then decreased by 
5%
The price increased by 
50% and then decreased by 
0.95%

The original selling price of a share of stock was d d dollars. The selling price for a share of the same stock at a later date was represented by the expression 1.5(0.05d) 1.5(0.05 d) . Which description could explain what happened to the price of the share of stock?\newlineThe price decreased by 95% 95 \% and then increased by 50% 50 \% \newlineThe price decreased by 0.95% 0.95 \% and then increased by 150% 150 \% \newlineThe price increased by 0.5% 0.5 \% and then decreased by 5% 5 \% \newlineThe price increased by 50% 50 \% and then decreased by 0.95% 0.95 \%

Full solution

Q. The original selling price of a share of stock was d d dollars. The selling price for a share of the same stock at a later date was represented by the expression 1.5(0.05d) 1.5(0.05 d) . Which description could explain what happened to the price of the share of stock?\newlineThe price decreased by 95% 95 \% and then increased by 50% 50 \% \newlineThe price decreased by 0.95% 0.95 \% and then increased by 150% 150 \% \newlineThe price increased by 0.5% 0.5 \% and then decreased by 5% 5 \% \newlineThe price increased by 50% 50 \% and then decreased by 0.95% 0.95 \%
  1. Simplify expression: Understand the expression 1.5(0.05d)1.5(0.05d). The expression 1.5(0.05d)1.5(0.05d) can be simplified by multiplying 1.51.5 by 0.05d0.05d, which gives us 0.075d0.075d. This means that the new selling price is 0.0750.075 times the original selling price dd.
  2. Calculate percentage change: Determine the percentage change from the original price to the new price. The coefficient 0.0750.075 in the expression 0.075d0.075d represents the new price as a percentage of the original price. To find out what percentage this is, we multiply 0.0750.075 by 100100, which gives us 7.5%7.5\%.
  3. Analyze change: Analyze the percentage change to match it with the given descriptions.\newlineThe new price is 7.5%7.5\% of the original price. This means that if the price had decreased by 95%95\% (to 5%5\% of the original), then increased by 50%50\%, the new price would be 7.5%7.5\% of the original price, because 50%50\% of 5%5\% is 2.5%2.5\%, and 5%+2.5%=7.5%5\% + 2.5\% = 7.5\%.
  4. Match description: Match the correct description with the calculated percentage change.\newlineThe correct description that matches the calculated percentage change is: "The price decreased by 95%95\% and then increased by 50%50\%." This is because the original price was reduced to 5%5\% of its value, and then that amount was increased by 50%50\%, resulting in a final price of 7.5%7.5\% of the original price.

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