To find the value of the stock after the two years, we can start with the initial value of the stock, \( xx \).
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First Year: The stock decreased by 21%. A decrease of 21% can be represented by multiplying the original value by \( 1 - 0.21 \) (which is \( 0.79 \)): \[ \text{Value after year 1} = xx \times 0.79 \]
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Second Year: The stock increased by 25% during the second year. An increase of 25% can be represented by multiplying the value at the end of the first year by \( 1 + 0.25 \) (which is \( 1.25 \)): \[ \text{Value after year 2} = (xx \times 0.79) \times 1.25 \]
Now, we can simplify this expression: \[ \text{Value after year 2} = xx \times 0.79 \times 1.25 \]
Calculating \( 0.79 \times 1.25 \): \[ 0.79 \times 1.25 = 0.9875 \]
So, the expression for the value of the stock after two years is: \[ \text{Value after two years} = xx \times 0.9875 \]
Thus, the final expression in terms of \( xx \) is: \[ 0.9875xx \]