Math Problem Statement

Khadija bought stock in a company two years ago that was worth xx dollars. During the first year that she owned the stock, it decreased by 31%. During the second year the value of the stock increased by 14%. Write an expression in terms of xx that represents the value of the stock after the two years have passed.

Solution

To find an expression that represents the value of the stock after two years, we will calculate the changes in value step by step.

  1. Initial stock value: Let the initial value of the stock be xxxx dollars.

  2. First year (decrease by 31%): After the first year, the stock value decreases by 31%. Therefore, the remaining value is: Value after first year=xx×(10.31)=xx×0.69\text{Value after first year} = xx \times (1 - 0.31) = xx \times 0.69

  3. Second year (increase by 14%): After the second year, the stock value increases by 14%. The value after the second year is: Value after second year=(xx×0.69)×(1+0.14)=xx×0.69×1.14\text{Value after second year} = (xx \times 0.69) \times (1 + 0.14) = xx \times 0.69 \times 1.14

Thus, the expression that represents the value of the stock after two years is: xx×0.69×1.14\boxed{xx \times 0.69 \times 1.14}

Would you like more details, or do you have any questions about this solution?

Here are 5 related questions to expand this concept:

  1. How would the expression change if the stock decreased by 20% the first year and increased by 30% the second year?
  2. If the initial stock value was $500, what would its value be after two years using this expression?
  3. What percentage change over two years would bring the stock back to its original value?
  4. How would you calculate the total percentage change over the two years?
  5. What happens to the final stock value if it decreases by a different percentage each year?

Tip: Always apply percentage changes sequentially, as each change is applied to the updated value, not the original amount.

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Math Problem Analysis

Mathematical Concepts

Percentage Change
Algebraic Expressions
Compound Percentage

Formulas

Value after percentage decrease: Initial Value * (1 - percentage decrease)
Value after percentage increase: Value after first year * (1 + percentage increase)

Theorems

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Suitable Grade Level

Grades 8-10