(algebra 1, unit 5, lesson 15) equal amounts ...
(algebra 1, unit 5, lesson 15) equal amounts of money were invested in stock a and stock b. in the first year, stock a increased in value by 20%, and stock b decreased by 20%. in the second year, stock a decreased in value by 20%, and stock b increased by 20%. was one stock a better investment than the other? select the correct choice. a stock a is a better investment than stock b. b stock b is a better investment than stock a. c neither stock is a better investment. explain your reasoning. type your response in the space below. type here
Answer
# Explanation:
## Step1: Let the initial investment in each stock be $x$.
Let the initial amount invested in stock A and stock B be $x$.
## Step2: Calculate the value of stock A after two - years.
In the first year, the value of stock A is $x(1 + 0.2)=1.2x$. In the second year, it is $1.2x(1 - 0.2)=1.2x\times0.8 = 0.96x$.
## Step3: Calculate the value of stock B after two - years.
In the first year, the value of stock B is $x(1 - 0.2)=0.8x$. In the second year, it is $0.8x(1 + 0.2)=0.8x\times1.2=0.96x$.
# Answer:
C. Neither stock is a better investment.