Question

Audrey bought stock in a company two years ago that was worth xx dollars. during the first year that she owned the stock, it increased by 31%. during the second year the value of the stock decreased by 34%. write an expression in terms of xx that represents the value of the stock after the two years have passed.

Answer 1

The expression that represents the value of the stock after two years is 0.8636 * xx.

Step-by-step explanation:

The expression that represents the value of the stock after two years can be calculated by first increasing the value of the stock by 31% in the first year and then decreasing it by 34% in the second year.

Let's say the initial value of the stock is xx dollars. After the first year, the stock would be worth xx + (31% of xx) = xx + (0.31 * xx) = 1.31 * xx.

After the second year, the stock would be worth (1.31 * xx) - (34% of (1.31 * xx)) = (1.31 * xx) - (0.34 * (1.31 * xx)) = (1.31 - 0.4464) * xx = 0.8636 * xx.

Therefore, the expression in terms of xx that represents the value of the stock after two years would be 0.8636 * xx.