Question

Evelyn bought stock in a company two years ago that was worth xx dollars. During the first year that she owned the stock, it decreased by 36%. During the second year the value of the stock decreased by 20%. Write an expression in terms of xx that represents the value of the stock after the two years have passed.

Answer 1

0.512xx

Explanation:

100% - 36% = 64%

64% = 0.64

thus after 1st yr, she is left with the value of 0.64xx

100% - 20% = 80%

80% = 0.8

thus after 2nd yr, she is left with the value of 0.8 x (0.64xx) = 0.512xx