Question

Gabriella purchased d dollars of two different stocks exactly one year ago. Currently, stock A has increased by 5%, and stock B has decreased by 5%.

Which of the following expressions could be used to represent the current value of each of Gabriella's stock accounts?









Reset Submit

Answer 1

Let's break down Gabriella's investments to understand how to calculate the current values of her stocks.

Assume Gabriella invested an amount \( a \) dollars in stock A and \( b \) dollars in stock B, with the total investment being \( d \) dollars:

\[
a + b = d
\]

1. **For Stock A**: Since stock A increased by 5%, the current value of stock A can be calculated as follows:

\[
\text{Current Value of Stock A} = a + 0.05a = 1.05a
\]

2. **For Stock B**: Since stock B decreased by 5%, the current value of stock B can be calculated as follows:

\[
\text{Current Value of Stock B} = b - 0.05b = 0.95b
\]

3. **Total Current Value**: The total current value of Gabriella's stocks can be represented as:

\[
\text{Total Current Value} = \text{Current Value of Stock A} + \text{Current Value of Stock B} = 1.05a + 0.95b
\]

Given that \( a + b = d \), we could express the total current value using the original total investment (though it would still depend on \( a \) and \( b \)).

However, if you are looking for expressions to represent the current value of each stock account individually, you have:
- Current value of stock A: \( 1.05a \)
- Current value of stock B: \( 0.95b \)

Those are the expressions that could be used to represent the current value of Gabriella's stock accounts.