Subjects algebra

Percentage Increase B3E6B6

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1. The problem states that the share price of a company falls by 60%. We want to find the percentage increase needed to return to the original price. 2. Let the original price be $P$. After a 60% decrease, the new price is: $$P_{new} = P - 0.60P = 0.40P$$ 3. To return to the original price $P$, the price must increase from $0.40P$ back to $P$. 4. Let the required percentage increase be $x\%$. Then: $$0.40P \times \left(1 + \frac{x}{100}\right) = P$$ 5. Divide both sides by $0.40P$: $$1 + \frac{x}{100} = \frac{P}{0.40P} = \frac{1}{0.40}$$ 6. Simplify the right side: $$1 + \frac{x}{100} = 2.5$$ 7. Subtract 1 from both sides: $$\frac{x}{100} = 2.5 - 1 = 1.5$$ 8. Multiply both sides by 100: $$x = 1.5 \times 100 = 150$$ 9. Therefore, the share price must increase by 150% to return to its original value. Final answer: 150%