document.write( "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? \n" ); document.write( "

Algebra.Com's Answer #729549 by ikleyn(52781) $\"\"$ $\"About$

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document.write( "Let P be the equal amount invested initially in each of the two stocks.\r\n" );
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document.write( "Then the first amount became  P*1.15*0.85 = 0.9775*P at the end of the second year.\r\n" );
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document.write( "     The second amount became  P*0.85*1.15 = 0.9775*P at the end of the second year.\r\n" );
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document.write( "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.\r\n" );
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