Question

Josiah bought stock in a company two years ago that was worth x dollars. during the first year that he owned the stock, it decreased by 39%. during the second year the value of the stock increased by 22%. write an expression in terms of x that represents the value of the stock after the two years have passed.

Answer 1

The value of the stock after two years, given the initial value of x dollars and the subsequent decreases of 39% and increase of 22%, is represented by the expression 0.7442x.

Step-by-step explanation:

Josiah bought stock in a company two years ago that was worth x dollars. During the first year that he owned the stock, it decreased by 39%. This means the stock was worth x - 0.39x = 0.61x after the first year. During the second year, the value of the stock increased by 22%. The increased value is calculated based on the value at the end of the first year, so it becomes 0.61x + 0.22(0.61x) = 0.61x + 0.1342x = 0.7442x. Therefore, the expression in terms of x that represents the value of the stock after two years have passed is 0.7442x.