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Suppose you invested $1100 in the stock market 2 years ago. During the first year, the value of the stock increased by 16%. During the second year, the value of the stock decreased by 16%. How much money is your investment worth at the end of the two-year period? (Note: The answer to this question is not $1100.)

Respuesta :

The value of the money at the end of the two-year period is  $1,071.84.

What are percentages?

Percentage can be described as a fraction out of an amount that is usually expressed as a number out of hundred.

What is the value of the stock after the first year?

After a 16% increase in the value of the stock, the value of the stock now becomes 116% (100 + 16).

116% x $1100 = $1,276

What is the value of the stock after the second year?

After a 16% decrease in the value of the stock, the value of the stock now becomes 84% (100 - 16)

84% x $1276 = $1,071.84

To learn more about percentages, please check: https://brainly.com/question/25764815

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