Percent Gain and Loss

Show your work for each problem.

1.
A stock goes from 100 dollars to 120 dollars. What is the percent gain?
1. a)25%
2. b)12%
3. c)20%
4. d)10%
Answer: 20%
gain.
2.
An investment drops from 200 dollars to 150 dollars. What is the percent loss?
1. a)33%
2. b)25%
3. c)50%
4. d)20%
Answer: 25%
, which is a 25% loss.
3.
You bought shares for 50 dollars and sold them for 75 dollars. What is your percent gain?
Answer: 50
Profit = dollars. Percent gain = .
4.
A stock falls from 80 dollars to 60 dollars. What is the percent loss?
Answer: 25
Loss = dollars. Percent loss = .
5.
Which formula correctly calculates percent change?
1. a)(New - Original) / Original x 100%
2. b)(New - Original) / New x 100%
3. c)New / Original x 100%
4. d)(Original - New) / Original x 100%
Answer: (New - Original) / Original x 100%
The correct formula is (New - Original) / Original x 100%. We divide by the original value because percent change measures change relative to the starting point.
6.
Your investment of 400 dollars is now worth 520 dollars. What is your percent gain?
Answer: 30
Change = . Percent gain = .
7.
A stock was 250 dollars and is now 200 dollars. Calculate the percent loss.
Answer: 20
1. What is the original value? 250
2. What is the new value? 200
3. What is the change (New - Original)? -50
4. What is the percent loss? 20
8.
Investment A: 100 dollars becomes 130 dollars. Investment B: 500 dollars becomes 600 dollars. Which had a better percent return?
1. a)Investment A (30%)
2. b)Investment B (20%)
3. c)Both are equal
4. d)Cannot determine
Answer: Investment A (30%)
A: gain. B: gain. Investment A has a better percent return even though B earned more dollars.
9.
You invested 800 dollars. Your portfolio is now worth 1000 dollars. Calculate your percent gain.
Answer: 25
1. What is your profit in dollars? 200
2. What do you divide the profit by? 800
3. What is 200 / 800 as a decimal? 0.25
4. What is this as a percent? 25
10.
A stock drops from 125 dollars to 100 dollars. What is the percent loss?
Answer: 20
Loss = . Percent loss = .
11.
Your investment loses 40%. What percent gain do you need to get back to your original value?
Answer: 66.67
1. Start with 100 dollars. After 40% loss, how much do you have? 60
2. How much do you need to gain to get back to 100? 40
3. What is the percent gain needed? (40/60 x 100) 66.67
12.
A stock gains 20% one year, then loses 20% the next year. What is the overall percent change?
1. a)-4% (loss)
2. b)-2% (loss)
3. c)0% (break even)
4. d)+4% (gain)
Answer: -4% (loss)
Start: 100. After +20%: . After -20%: . Overall: loss.
13.
Your stock tripled in value (went up 200%). What is the new value if you started with 150 dollars?
Answer: 450
1. What does 200% gain mean in terms of multiplying? 3
2. What is 150 x 3? 450
14.
After a 25% loss, an investment is worth 300 dollars. What was the original value?
Answer: 400
After 25% loss, 75% remains. If , then Original = dollars.
15.
You lose 50% on an investment. How much percent gain do you need to break even?
Answer: 100
1. If you start with 100 and lose 50%, how much do you have? 50
2. How much do you need to gain to get back to 100? 50
3. What percent of 50 is 50? 100
16.
Which represents a bigger change: 50 dollars to 75 dollars, or 200 dollars to 250 dollars?
1. a)50 to 75 (50% gain)
2. b)Cannot compare
3. c)Both are equal
4. d)200 to 250 (25% gain)
Answer: 50 to 75 (50% gain)
First: gain. Second: gain. Even though 50 dollars is the same dollar increase, 50 to 75 is a bigger percent change.
17.
You bought a stock for 40 dollars and sold it for 50 dollars. Find the percent gain step by step.
Answer: 25
1. What is the profit (New - Original)? 10
2. Divide the profit by the original price. What is 10/40? 0.25
3. Convert to percent. What is 0.25 x 100? 25