An investor buys shares worth $12,000, which appreciate by 15% in the first year and then depreciate by 10% in the second year. What is the total value of the investment at the end of two years?

Wed, 06 May 2026 21:18:14 +0000

Investor’s Investment Journey: How $12,000 Shares Grow and Decline Over Two Years An investor recently bought shares valued at $12,000, marking an important step in their financial strategy. However, market dynamics soon affected the investment, with a 15% appreciation in the first year followed by a 10% depreciation in the second year. Understanding the final value of such investments helps investors predict returns and plan for long-term growth. ### Year 1: A Strong Starting Gain of 15% At the start, the investor purchased shares totaling $12,000. The first year brought a significant boost: a 15% increase in share value. To calculate the gain: