The original selling price of a share of stock was dd dollars. The selling price for a share of the same stock at a later date was represented by the expression 0, point, 4, 5, left parenthesis, 1, point, 2, 5, d, right parenthesis0.45(1.25d). Which description could explain what happened to the price of the share of stock?

Answer 1

To understand what happened to the price of the share of stock, let's simplify the expression given for the later selling price:

The expression is \(0.45(1.25d)\).

1. Evaluating the expression:

   • First, we simplify \(1.25d\):
     • This means that the price has increased to 125% of the original price \(d\).
   • Now, multiplying by \(0.45\):
     • This represents a further reduction or adjustment applied to the \(1.25d\) price.

2. Calculating the total value:

   • Let’s denote the original price as \(d\). The expression can be simplified as follows: \[ 0.45(1.25d) = 0.45 \times 1.25 \times d = 0.5625d \]

This means that the later selling price of the share of stock is \(0.5625d\), which is approximately 56.25% of the original price \(d\).

Description:

• The price of the share of stock initially increased to 125% of its original value (the \(1.25\) factor), but then was subsequently reduced, leading to a final selling price of approximately 56.25% of the original value. This indicates a decline in the stock price after a temporary increase.

In summary, the selling price of the stock first increased and then significantly dropped, resulting in a final price that is less than the original price \(d\).