You start with an investment of $1440.09.The first year the investment grows by 7%.The second year the investment declines by 7%.What is the value of the investment at the end of the two-year period? Round your answer to the nearest cent.
A) $1,440.09
B) $1,433.03
C) $0.00
D) None of the above

Question

You start with an investment of $1440.09.The first year the investment grows by 7%.The second year the investment declines by 7%.What is the value of the investment at the end of the two-year period? Round your answer to the nearest cent. ​
A) $1,440.09
B) $1,433.03
C) $0.00
D) None of the above

Quizplus · Accepted Answer

The investment grows by 7% in the first year, making it $1440.09 * 1.07 = $1540.8963. In the second year, it declines by 7%, so it becomes $1540.8963 * 0.93 = $1433.033559, which rounds to $1433.03.

You Start with an Investment of $1440