Phylisha_s+excellent+comment+and+problems+to+be+discussed+on+March+25

Phylisha_s+excellent+comment+and+problems+to+be+discussed+on+March+25

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework to be discussed in class on Friday, March 25 Please do Chapter 10, page 392, Exercises 1,3,17 and make sure you understand problems 4-9, that were in today’s handout. 4. If the Dow Jones Industrial Average (DJIA) starts the month at 11,000, increases by 5% the first week, then decreases by 5% the second week, what will its value be after two weeks? This is equivalent to what total percentage change over the two week period? Is this surprising? Solution: Increase by 5%: 1.05*11000=11550 or 11000+.05*11000=11000+550=11550 Decrease by 5%: .95*11550=10972.5 or 11550-.05*11550=11550-577.5=10972.5 In one step: 1.05*.95*11000=10972.5 1.05*.95=.9975=99.75% which represents a 1-.9975=.0025 decrease or 100%-99.75%=.25% decrease Check: 11000-.25%*11000=10972.5 5. What would the percentage decrease have to be in the second week so that the DJIA is at 11,000, its starting value at the beginning of the month? Answer; 5. 1.05*x%*11000=11000 x%=.952381=95.2381% So a 4.7619 % decrease will bring the DJIA back down to its starting value! 6.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/20/2012 for the course MATH 103 taught by Professor Berkowitz during the Spring '07 term at Rutgers.

Page1 / 3

Phylisha_s+excellent+comment+and+problems+to+be+discussed+on+March+25

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online