You buy 200 shares at $15.25/share. Your investment gains 10% the first year, and then loses $1.00/share the second year. How much has your total investment increased by the second year?
1. Calculate the total initial investment:
200 shares * $15.25/share = $3050
2. Calculate the gain after the first year:
$3050 * 10% = $305
3. Calculate the new value of the investment after the first year:
$3050 + $305 = $3355
4. Calculate the loss in the second year:
$1.00/share * 200 shares = $200
5. Calculate the final value of the investment after the second year:
$3355 - $200 = $3155
6. Calculate the total increase in the investment by the second year:
$3155 - $3050 = $105
Therefore, your total investment has increased by $105 by the second year.