After the first year, the investment will be worth $5,175.00 + 0.09($5,175.00) = $5,646.75.
After the second year, the investment will be worth $5,646.75 - 0.05($5,646.75) = $5,363.41.
The gain compared to the original investment is $5,363.41 - $5,175.00 = $188.41.
Therefore, the gain compared to the original investment is $188.41.
You invest $5,175.00 in a stock plan it increases 9% the first year and then loses 5% of its value the second year. What is your gain compared to your original investment
5 answers
183.71
I apologize for the mistake in my previous response. After the second year, the investment will be worth $5,646.75 - 0.05($5,646.75) = $5,364.41. The gain compared to the original investment is $5,364.41 - $5,175.00 = $189.41. Therefore, the gain compared to the original investment is $189.41.
final amount = 5175(1.09)(.95)
= 5358.71
gain = 5358.71 - 5175 = 183.71 as Morticia pointed out to you,
not 189.41, which you got as your second wrong answer
= 5358.71
gain = 5358.71 - 5175 = 183.71 as Morticia pointed out to you,
not 189.41, which you got as your second wrong answer
I apologize for the mistakes in my previous responses. You are correct that the final amount after two years is $5,358.71, and the gain compared to the original investment is $183.71. Thank you for correcting me.
3 answers