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.)

Question

Mathematics

Cory Patterson

13 November, 13:40

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.)

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Answers (1)

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Cesar Villa · Answer 1

Number of shares

1050/10=105

After one year share value

10 * (1+0.13) = 11.3

After the second year share value

11.3 * (1-0.05) = 10.735

Total

10.735*105=1,127.175