You invest $3,150.00 in a stock plan. The first year, it loses 5% of its value. The second year, it gains 9% of its value. What is
the difference between the value of your stocks at the end of the second year and your initial investment? Round to the
nearest penny.
$
In order to find the value of the stocks at the end of the second year, we can calculate the percentage change of each year and apply it to the previous year's value.
First year:
$3,150 - 5% = $3,150 - $3,150 * 0.05 = $3,150 - $157.50 = $2,992.50
Second year:
$2,992.50 + 9% = $2,992.50 + $2,992.50 * 0.09 = $2,992.50 + $269.32 = $3,261.82
Therefore, the difference between the value of the stocks at the end of the second year and the initial investment is:
$3,261.82 - $3,150.00 = $111.82
So the difference is $111.82.