# Stock problem

• Sep 30th 2008, 08:48 PM
alric36
HELP Stock Problem ***ASAP
umm... i'm in the 5th grade and i need help on this problem.

-------------------
You decide you will buy a stock only if it shows an overall increase over the next 30 days. The first 10 days it has an average daily increase of \$0.30. The next 10 days it has an average daily decrease of \$0.45. The last 10 days it has an average daily increase of \$0.25. Will you buy the stock? Explain.
• Sep 30th 2008, 08:58 PM
Jameson
Quote:

Originally Posted by alric36
umm... i'm in the 5th grade and i need help on this problem.

-------------------
You decide you will buy a stock only if it shows an overall increase over the next 30 days. The first 10 days it has an average daily increase of \$0.30. The next 10 days it has an average daily decrease of \$0.45. The last 10 days it has an average daily increase of \$0.25. Will you buy the stock? Explain.

Let's say the stock started out at price, \$X. So, after 10 days, the stock went up by (10 days) times (30 cents a day) = \$3.00.

So after 10 days, the stock price is \$X+\$3.

The next 10 days, the stock decreases by (10 days) times (45 cents a day) = -\$4.50.

So the new price of the stock after 20 days is (\$X+\$3)-\$4.50=\$X-1.50. So the price is below the starting price.

Last 10 days the stock went up by (10 days) times (25 cents a day) = \$2.5.

So the final total is (\$X-\$1.50)+\$2.5=\$X+\$1

So the stock price went up one dollar over the whole month.