Question

Robert bought stock in a company two years ago that was worth a dollars. During the first year

that he owned the stock, it decreased by 36%. During the second year the value of the stock
increased by 6%. Write an expression in terms of a that represents the value of the stock after
the two years have passed.

Answer 1

Robert's stock value after two years is equal to (a - 0.36a) + 0.06(a - 0.36a), where a represents the initial stock value. This expression can be simplified to 0.64a - 0.216a or 0.424a. So, Robert's stock value after two years is 0.424 times the initial stock value.