Question

WILL GIVE MEDAL AND FAN! you invest $5,175.00 in a stock plan. it increases 9% the first year and then loses 5% of it's value the second year. what is your gain compared to your original investment?

Answer 1

5,175 + 9% = 5640.75

5640.75 - 5% = 5302.305

Original investment = 5,175
Gain                          = 5,302.305

Subtract them both and get = 127.305

Answer 2

Answer:

$183.7125

Step-by-step explanation:

Given,

Original investment, A = $ 5,175.00

In first year,

The total investment = $ 5,175.00

The amount is increased by 9 %,

Thus, the final amount at the end of first year,

$A_1=5,175(1+\frac{9}{100})^1$

$=5175(1+0.09)$

$=5175(1.09)$

$=\ 5640.75$

In Second year,

The total investment = $ 5640.75,

The amount is decreased by 5 %,

Thus, the final amount at the end of second year,

$A_2=5640.75(1-\frac{5}{100})^1$

$=5640.75(1-0.05)$

$=5640.75(0.95)$

$=\ 5358.7125$

Hence,

$\text{Total Gain}=A_2-A$

$=5358.7125-5175$

$=\ 183.7125$