Homework Help: College Algebra

Posted by Nicholl on Friday, June 15, 2012 at 9:46pm.

Tina invested $30,000 in a stock. In the first year, the stock increased in value by 10%. In the second year, the stock decreased in value by 20%. What percentage gain is requird in the third year for Tina's stock to return to its original value?

College Algebra - drwls, Saturday, June 16, 2012 at 5:39am
Let x be the factor by which the value changes in the third year. If you end up with the same amount after three years,

1.1 * 1.2 * x = 1

x = 0.7576
That would require a 24.24% LOSS in the third year

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