Question

You invest $3,150.00 in a stock plan. The first year, it loses 5% of its value. The second year, it gains 9% of its value. What is the difference between the value of your stocks at the end of the second year and your initial investment?

Answer 1

Given:

The investment is $3,150.00.

The loss percent for the first year is 5 %.

The gain percent for the second year is 9 %.

Required:

We need to find the investment amount at end of the second year.

Step-by-step explanation:

The investment amount at the end of the first year is

`=3150(1-(5)/(100))`
`=3150(1-0.05)`
`=2992.5`

The investment amount at the end of the first year is $2992.5.

The investment amount at the end of the second year is

`=2992.5(1+(9)/(100))`
`=2992.5(1+0.09)`
`=3261.825`
`=3261.83`

The investment amount at the end of the second year is $3261.83.

Final answer:

The investment amount at the end of the second year is $3261.83.