Answer:
Shyam's original investment was $4000.
Step-by-step explanation:
Suppose, Shyam's original investment was [tex]x[/tex] dollar.
In the first year, his stock increased 20%. So, the value of the stock will be: [tex](x+0.20x)=1.20x[/tex] dollar.
He paid his stock broker $300 and then lost $450. So now, the value of the stock will be: [tex](1.20x-300-450)=(1.20x-750)[/tex] dollar.
He then withdrew $500, so the value of the remaining investment [tex]=(1.20x-750-500)=(1.20x-1250)[/tex] dollar and this remaining investment doubled now.
So, the value of the investment now [tex]=2(1.20x-1250)[/tex] dollar, which is given as $7100.
Thus, the equation will be.......
[tex]2(1.20x-1250)=7100\\ \\ 2.40x-2500=7100\\ \\ 2.40x=7100+2500=9600\\ \\ x=\frac{9600}{2.40}=4000[/tex]
So, Shyam's original investment was $4000.
