Question

Shaquana bought stock in a company two years ago that was worth a dollars_

During the first year that she owned the stock, it increased by 37%. During
the second year the value of the stock decreased by 7%. Write an expression
in terms of a that represents the value of the stock after the two years have
passed.

Answer 1

1.2741a

Explanation:

You want an expression for the value of 'a' after it has increased by 37%, then decreased by 7%.

Percentage change

The result of adding 37% of the value of 'a' to its original value is ...

a + 37%×a = a(1 +0.37) = 1.37a

The result of decreasing that value by 7% is ...

(1.37a)×(1 -0.07) = (1.37a)(0.93) = 1.2741a

The value of the stock after 2 years is 1.2741a.