You start with an investment of $1482.65.The first year the investment declines by 7%.The second year the investment grows by 8%.What is the value of the investment at the end of the two-year period? Round your answer to the nearest cent.
A) $1489.17
B) $1459.52
C) $14.83
D) $112.09

Question

You start with an investment of $1482.65.The first year the investment declines by 7%.The second year the investment grows by 8%.What is the value of the investment at the end of the two-year period? Round your answer to the nearest cent. ​
A) $1489.17
B) $1459.52
C) $14.83
D) $112.09

Quizplus · Accepted Answer

The investment value after the first year is $1482.65 * (1 - 0.07) = $1378.86. After the second year, it grows by 8%, so the value is $1378.86 * (1 + 0.08) = $1489.17.

You Start with an Investment of $1482