SOLUTION: Two equal amounts of money were invested in two different stocks. The value of the first stock increased by 15% the first year and decreased by 15% the second year. The second stoc

Algebra.Com
Question 1114644: Two equal amounts of money were invested in two different stocks. The value of the first stock increased by 15% the first year and decreased by 15% the second year. The second stock decreased by 15% the first year and increased by 15% the second year. What investment was more profitable?
Answer by ikleyn(52786)   (Show Source): You can put this solution on YOUR website!
.
Let P be the equal amount invested initially in each of the two stocks.


Then the first amount became  P*1.15*0.85 = 0.9775*P at the end of the second year.


     The second amount became  P*0.85*1.15 = 0.9775*P at the end of the second year.


As you see, both investments were equally profitable with the negative profit (= loss) of  (100% - 97.75%) = 2.25%  at the end of the second year.


RELATED QUESTIONS

Suppose you invested 10,000 dollars in two stocks and the first stock increased in value... (answered by checkley77)
A broker invested a total of $45,000 in two different stocks. One stock earned 9% per... (answered by jorel1380)
Suppose you invested $2500 in the stock market 2 years ago. During the first year, the... (answered by jorel555)
Demetri invested money in two different stocks. After one year, he received a letter that (answered by greenestamps)
Two different stocks were purchased for $18,025. The first stock was priced at$45.50 per... (answered by stanbon)
Juan invested $24,000 into two stocks. The first stock paid a 4% dividend and the second... (answered by greenestamps)
Myesha bought stock in a company two years ago that was worth xx dollars. During the... (answered by ikleyn)
Formulate a system of equations for the situation below and solve. A private investment... (answered by Theo,MathTherapy)
Formulate a system of equations for the situation below and solve. A private investment... (answered by mananth,MathTherapy)