Question

Caleb 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 38%. During the second year the value of the stock decreased by 12%. Write an expression in terms of xx that represents the value of the stock after the two years have passed.

Answer 1

Answer:

  1.2144xx

Step-by-step explanation:

The multiplier of value for the first year was (1 +38%) = 1.38.

The multiplier of value for the second year was (1 -12%) = 0.88.

Then the multiplier of value for the two years was ...

  1.38×0.88 = 1.2144

The value of the stock after 2 years was ...

  1.2144xx

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Comment on the variable

We have used the variable given in the problem statement (xx). If you intend something different, replace xx with the variable you intend.