Answer:
$183.7125
Step-by-step explanation:
Given,
Original investment, A = $ 5,175.00
In first year,
The total investment = $ 5,175.00
The amount is increased by 9 %,
Thus, the final amount at the end of first year,
[tex]A_1=5,175(1+\frac{9}{100})^1[/tex]
[tex]=5175(1+0.09)[/tex]
[tex]=5175(1.09)[/tex]
[tex]=\$ 5640.75[/tex]
In Second year,
The total investment = $ 5640.75,
The amount is decreased by 5 %,
Thus, the final amount at the end of second year,
[tex]A_2=5640.75(1-\frac{5}{100})^1[/tex]
[tex]=5640.75(1-0.05)[/tex]
[tex]=5640.75(0.95)[/tex]
[tex]=\$ 5358.7125[/tex]
Hence,
[tex]\text{Total Gain}=A_2-A[/tex]
[tex]=5358.7125-5175[/tex]
[tex]=\$183.7125[/tex]
