Question

Norman purchased $420 of stock in Carnival Cruise Lines last week. That stock is now worth $525. Use your knowledge of percent change to determine the percentage by which the value of Norman’s stock has increased. Be sure to show your work.

Answer 1

The Norman’s stock has been increased to 25%.

Explanation:

• Norman purchased $420 of stock in Carnival Cruise Lines last week.
• The worth of the stock at present is $525.

Therefore, the stock worth has been increased from $420 to $525.

The percent change can be determined using the formula :

% increase = (difference between two values / smaller value) × 100

Here, the difference of $420 and $525 was found as $105.

The smaller one of two vlaues is $420.

Percentage increase = (105 / 420) × 100

⇒ 0.25 × 100

⇒ 25 %

The percentage increase of Norman’s stock was determined as 25%

Therefore, the Norman’s stock has increased to 25%.