To find out how much the total investment has increased by the second year, let's first calculate the initial investment and then track its value after each year.
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Initial Investment: \[ \text{Initial price per share} = 15.25 \] \[ \text{Number of shares} = 200 \] \[ \text{Total initial investment} = 200 \times 15.25 = 3050 \]
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End of Year 1: The investment gains 10% in the first year. \[ \text{Gain} = 3050 \times 0.10 = 305 \] \[ \text{Total value after Year 1} = 3050 + 305 = 3355 \]
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End of Year 2: The investment loses $1.00 per share in the second year. \[ \text{Loss per share} = 1.00 \] \[ \text{Total loss for 200 shares} = 200 \times 1.00 = 200 \] \[ \text{Total value after Year 2} = 3355 - 200 = 3155 \]
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Increase in Total Investment: Now, we need to find out how much the total investment has increased over the two years. \[ \text{Increase} = \text{Total value after Year 2} - \text{Initial investment} = 3155 - 3050 = 105 \]
Thus, the total investment has increased by $105 by the end of the second year.