Question

You invest $1,050.00, buying stock in a company at $10.00/share. The shares increase in value by 13% the first year and decrease by 5% the second year. How much is the total value of your stocks in the second year? (Remember to round the per-share price to the nearest penny before completing any other computations.)

Answer 1

dividing initial investment / price per share gives a whole number of shares, so you can safely say all the initial amount was invested

in that case, you'd simply calculate 1.13 * 1050 to represent a 13% increase in the first year, and (1.13 * 1050) * (1 - 0.05) to represent a 5% decrease in the second year