explain anwser

Question

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

Answer 1

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.