Question

A company’s stock price decreased by 16 of its value each month for 3 months. If the original price was $60, what
was the final stock price

Answer 1

To calculate the final stock price after a decrease of \( \frac{1}{6} \) of its value each month for 3 months, we can follow these steps:

1. Calculate \( \frac{1}{6} \) of the original stock price, which is \( 60 \):
\[
\frac{1}{6} \times 60 = 10
\]

2. This means the stock price decreases by $10 each month.

3. Now we subtract this amount for each of the 3 months:

- After the first month:
\[
60 - 10 = 50
\]
- After the second month:
\[
50 - 10 = 40
\]
- After the third month:
\[
40 - 10 = 30
\]

Thus, the final stock price after 3 months is **$30**.