(algebra 1, unit 5, lesson 15)\nequal amounts...
(algebra 1, unit 5, lesson 15)\nequal 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%.\nwas one stock a better investment than the other?\nselect the correct choice.\na stock a is a better investment than stock b.\nb stock b is a better investment than stock a.\nc neither stock is a better investment.\nexplain your reasoning.\ntype your response in the space below.
Answer
# Explanation:
## Step1: Let the initial investment in each stock be $x$.
For stock A, after the first - year increase of 20%, the value is $x(1 + 0.2)=1.2x$. Then, after the second - year decrease of 20%, the value is $1.2x(1 - 0.2)=1.2x\times0.8 = 0.96x$.
## Step2: For stock B, after the first - year decrease of 20%, the value is $x(1 - 0.2)=0.8x$. Then, after the second - year increase of 20%, the value is $0.8x(1 + 0.2)=0.8x\times1.2 = 0.96x$.
# Answer:
C. Neither stock is a better investment.