Victoria 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 16%. During the second year the value of the stock increased by 8%. Write an expression in terms of x that represents the value of the stock after the two years have passed. Answer:

Question

Victoria 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  16%. During the second year the value of the stock increased by  8%. Write an expression in terms of  x that represents the value of the stock after the two years have passed. Answer:

Bytelearn · Accepted Answer

Calculate stock value after decrease: Calculate the value of the stock after the first year's decrease. The stock decreased by 16% in the first year. To find the value after the decrease, we multiply the original value x by (100% - 16%). Value after first year = x * (1 - 0.16)Simplify expression from Step 1: Simplify the expression from Step 1. Value after first year = x * 0.84Calculate stock value after increase: Calculate the value of the stock after the second year's increase. The stock increased by 8% in the second year. To find the value after the increase, we multiply the value after the first year by (100% + 8%). Value after second year = (x * 0.84) * (1 + 0.08)Simplify expression from Step 3: Simplify the expression from Step 3. Value after second year = (x * 0.84) * 1.08Perform final multiplication: Perform the multiplication to get the final expression. Value after second year = x * 0.84 * 1.08Simplify final expression: Simplify the final expression. Value after second year = x * 0.9072

Full solution

More problems from Compound interest

Related topics