Question

Makayla bought stock in a company two years ago that was worth x dollars. During the first year that she owned the stock, it increased by 12%. During the second year the value of the stock decreased by 7%. 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 the first year would be 1.12x because it increased by 12%.

To find the value of the stock after the second year, we need to multiply the first year's value by the percentage change of the second year:

1.12x - (0.07)(1.12x)

Simplifying this expression, we get:

1.12x - 0.0784x

Combining like terms, we get:

1.0416x

Therefore, the expression that represents the value of the stock after the two years have passed is 1.0416x.