Lily bought stock in a company two years ago that was worth xx dollars. During the first year that she owned the stock, it increased by 14%. During the second year the value of the stock increased by 34%. 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 start with the initial value of the stock, which is \( xx \).

1. After the first year, the stock increases by 14%. The value at the end of the first year is: \[ xx + 0.14 \cdot xx = xx(1 + 0.14) = xx(1.14) \]

2. After the second year, the stock increases by 34% based on its value at the end of the first year. The value at the end of the second year is: \[ xx(1.14) + 0.34 \cdot xx(1.14) = xx(1.14)(1 + 0.34) = xx(1.14)(1.34) \]

Now, we can compute the final expression: \[ xx(1.14)(1.34) \]

Calculating \( 1.14 \times 1.34 \): \[ 1.14 \times 1.34 = 1.5256 \]

Thus, the expression for the value of the stock after two years is: \[ xx \cdot 1.5256 \]

So the final value of the stock after two years is: \[ \boxed{1.5256 , xx} \]