Round any decimals to the nearest penny.
You invest $1,050.00, buying stock in a company at $10.00/share. The shares increase in value by 13% the first year and decrease by 5% the second year. How much is the total value of your stocks in the second year? (Remember to round the per-share price to the nearest penny before completing any other computations.)
First, calculate the new price per share after the 13% increase in value:
$10.00 * 1.13 = $11.30
Next, calculate the new price per share after the 5% decrease in value:
$11.30 * 0.95 = $10.74
Now, calculate the total value of your stocks in the second year:
$1,050.00 / $10.74 = 97.79 shares
Total value = 97.79 shares * $10.74 = $1,049.68
Therefore, the total value of your stocks in the second year is $1,049.68.