Answer:
1. $(x+0.03) - $x
2. $ 34.21
Explanation:
Let the price of XYZ inc's share to be = $ x
On Monday, the price drops by $ 0.02 = $ x- $ 0.02 = $ (x-0.02)
New price of shares on Monday is = $ (x- 0.02)
On Tuesday the price goes up by $0.05 = $ (x-0.02) + $ 0.05 = $(x-0.02+0.05)
New price on Tuesday = $( x+ 0.03)..............................................(a)
Change in price of one share of XYZ's stock= Price on Tuesday - price of share
= $(x+0.03) - $x..........................................(b)
2. Give that x= $34.18 solve equation (a) above
Price on Tuesday at close of business= $ (x+0.03)
= $ (34.18+0.03)
= $ 34.21