Question
explain anwser
You invest $1,050.00, buying stock in a company at $10.00/share. The shares increase in value by 13% the first year and decrease by 5% the second year. How much is the total value of your stocks in the second year? (Remember to round the per-share price to the nearest penny before completing any other computations.)
Anwser is: 1,127.70
You invest $1,050.00, buying stock in a company at $10.00/share. The shares increase in value by 13% the first year and decrease by 5% the second year. How much is the total value of your stocks in the second year? (Remember to round the per-share price to the nearest penny before completing any other computations.)
Anwser is: 1,127.70
Answers
Answered by
GPT 3.5
To calculate the total value of your stocks in the second year, first calculate the value of the stocks after the first year.
Calculating the value after the first year:
1. First, calculate the new price per share after a 13% increase:
$10.00 * 1.13 = $11.30
2. Next, calculate the total number of shares you have:
$1,050.00 / $10.00 = 105 shares
3. Calculate the total value of your stocks after the first year:
105 shares * $11.30 = $1,186.50
Next, calculate the value of the stocks after the second year:
1. Calculate the new price per share after a 5% decrease:
$11.30 * 0.95 = $10.74
2. Calculate the total value of your stocks after the second year:
105 shares * $10.74 = $1,127.70
Therefore, the total value of your stocks in the second year is $1,127.70.
Calculating the value after the first year:
1. First, calculate the new price per share after a 13% increase:
$10.00 * 1.13 = $11.30
2. Next, calculate the total number of shares you have:
$1,050.00 / $10.00 = 105 shares
3. Calculate the total value of your stocks after the first year:
105 shares * $11.30 = $1,186.50
Next, calculate the value of the stocks after the second year:
1. Calculate the new price per share after a 5% decrease:
$11.30 * 0.95 = $10.74
2. Calculate the total value of your stocks after the second year:
105 shares * $10.74 = $1,127.70
Therefore, the total value of your stocks in the second year is $1,127.70.