Khalil bought stock in a company two years ago that was worth xx dollars. During the first year that he owned the stock, it increased by 30%. During the second year the value of the stock decreased by 24%. Write an expression in terms of xx that represents the value of the stock after the two years have passed.

Answer 1

To find the value of the stock after two years, we can calculate the effects of the increase in the first year and the decrease in the second year step by step.

1. Initial Value of the Stock: Let the initial value of the stock be \( xx \).

2. After the First Year: The stock increases by 30%. To find the value after this increase, we can multiply the original value by 1 plus the percentage increase (which is 0.30): \[ \text{Value after Year 1} = xx \times (1 + 0.30) = xx \times 1.30 = 1.30xx \]

3. After the Second Year: In the second year, the value of the stock decreases by 24%. To find the value after this decrease, we multiply the value at the end of the first year by 1 minus the percentage decrease (which is 0.24): \[ \text{Value after Year 2} = (1.30xx) \times (1 - 0.24) = (1.30xx) \times 0.76 \]

4. Calculating the Final Value: Now we compute the final value: \[ = 1.30xx \times 0.76 = 0.988xx \]

Thus, the expression that represents the value of the stock after two years is: \[ 0.988xx \]