The price of the shares of Nadir Explorations Ltd. fell by 64% in the past year to the current price of $0.45 per share.  In dollars and cents, how much did the price of each share drop in the past year?

Expert Answers

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You need to evaluate how much did the price of each share drop in the past year, hence, you need to subtract `$0.45` from original price of share, such that:

`P_i - $0.45 = P_f` (final price)

You also need to remember that `P_f` represents `64%` from `P_i` , such that:

`(P_f)/(P_i) = 64/100 => (P_f)/(P_i) = 0.64 => P_f = 0.64P_i`

Replacing `0.64P_i ` for` P_f` in equation `P_i - $0.45 = P_f` yields:

`P_i - $0.45 = 0.64P_i => P_i - 0.64P_i = $0.45`

`0.36P_i = $0.45 => P_i = 0.45/0.36 => P_i = $0.8`

Hence, evaluating how much did the price of each share drop in the past year yields the amount of ` $0.35` per share.

Approved by eNotes Editorial Team

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