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      Question

      The price of a stock increased by 30% in the first year

      and decreased by 20% in the second year. If an investor bought 100 shares of the stock for β‚Ή1,000, then what is the final value of the investment after 2 years?
      A β‚Ή960 Correct Answer Incorrect Answer
      B β‚Ή1,040 Correct Answer Incorrect Answer
      C β‚Ή1,400 Correct Answer Incorrect Answer
      D β‚Ή1,020 Correct Answer Incorrect Answer

      Solution

      The correct answer is B

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