Suppose you invested $1600 in the stock market 2 years ago. During the first year, the value of the stock increased by 13%. During the second year, the value of the stock decreased by 13%. How much money is your investment worth at the end of the two-year period? Did you earn money or lose money? (Note: The answer to this question is not $1600.)
We first get the value of the investment after 1 year. To get a 13% increase we multiply the investment of $1600 by *blank* .
Increase = 1600 times(x) *blank* = $ *blank*
