Question

You buy 200 shares at $15.25/share. Your investment gains 10% the first year, and then loses $1.00/share the second year. How much has your total investment increase by the second year?

Answer 1

$105.00

Explanation:

I had it on a test :)

Answer 2

Your total investment increase by $105.00 by second year.

Explanation:

You bought 200 shares at the price = $15.25 per share

Total cost of 200 shares = 200 × 15.25 = $3050

First year your investment gains profit = 10%

10% of 3050 =
`(10)/(100)` × 3050

= 0.10 × 3050 = $305

Total value of 200 shares on first year = 3050 + 305 = $3,355

Then loses $1.00 per share the second year = 200 × 1.00 = $200

on second year the value of 200 shares would be = 3,355 - 200 = $3,155

So profit by second year = 3,155 - 3050 = $105

Your total investment increase by $105.00 by second year.