Bao bought stock in a company two years ago that was worth x dollars. During the first year that she owned the stock, it decreased by 39%. During the second year the value of the stock decreased by 38%. Write an expression in terms of x that represents the value of the stock after the two years have passed.Answer:
Q. Bao bought stock in a company two years ago that was worth x dollars. During the first year that she owned the stock, it decreased by 39%. During the second year the value of the stock decreased by 38%. Write an expression in terms of x that represents the value of the stock after the two years have passed.Answer:
Calculate Decreased Value: Determine the value of the stock after the first year.The stock decreased by 39% in the first year. To find the decreased value, we calculate 39% of x and subtract it from x.Decrease in value = 39% of x = 0.39×xValue after first year = x−0.39×xSimplify the expression to find the value after the first year.Value after first year = x×(1−0.39)=x×0.61
Find Value After First Year: Determine the value of the stock after the second year.The stock decreased by 38% in the second year. We need to apply this decrease to the value of the stock at the end of the first year.Decrease in value during second year = 38% of the value after first year = 0.38×(x×0.61)Value after second year = Value after first year - Decrease during second yearValue after second year = x×0.61−0.38×(x×0.61)Simplify the expression to find the value after the second year.Value after second year = x×0.61×(1−0.38)=x×0.61×0.62
Apply Decrease for Second Year: Write the final expression.The final expression that represents the value of the stock after two years is:Value after two years = x×0.61×0.62
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