You invest $2,000.00 in a stock plan and another $2,000.00 in a savings account. the stock plan decreases by 7% the first year and gains 10% the second year. the savings account earns a 3.7% apr and compounds annually. what is the difference in earnings between the stock and savings account at the end of the second year?

$104.738

Step-by-step explanation:

Let's work out the stock plan first:

$2,000 - 7% in the first year = $1,860

$1,860 + 10% = $2,046 in the second year

Savings account:

$2,000 + 3.7% = $2,074 in the first year

$2,074 + 3.7% = $2,150.738 in the second year

The difference:

$2,150.738 - $2,046 = $104.738

x is variable or an unknown value to find

example:

2x = 5 which means x = 3