SOLUTION: Suppose that you have $11,000 your investment decreases 60% and then increases by 70%. your advisor tells you that you had a 10% increase on your 11000 investment is he right or wr

Algebra.Com
Question 1063847: Suppose that you have $11,000 your investment decreases 60% and then increases by 70%. your advisor tells you that you had a 10% increase on your 11000 investment is he right or wrong and whats the correct gain or loss.
Found 3 solutions by josmiceli, jorel555, MathTherapy:
Answer by josmiceli(19441)   (Show Source): You can put this solution on YOUR website!
60% decrease:


--------------------------
70% increase:

----------------------


This is a 32% decrease
==========================
check:
Suppose you start with dollars

and

You end up with 68% of x. That is
a 32% decrease in x
OK

Answer by jorel555(1290)   (Show Source): You can put this solution on YOUR website!
First off, you have $11000 invested. It first decreases by 60%, leaving you with 40% of the original investment, or 11000 x .4=$4400. After it increases by 70%, you have 1.7 times your money, or $7480. 11000-7480/11000=32% loss on your original investment. ☺☺☺☺
Answer by MathTherapy(10557)   (Show Source): You can put this solution on YOUR website!

Suppose that you have $11,000 your investment decreases 60% and then increases by 70%. your advisor tells you that you had a 10% increase on your 11000 investment is he right or wrong and whats the correct gain or loss.
A SPECIFIC amount here DOESN'T matter. In other words, the $11,000 is irrelevant.



After a 60% reduction, itw's valued at 40% (.4) of its original value

After a 70% increase, itw's valued at 68%, or .68 (.4 * 1.7) of its original value

At 68% of its original value, it has lost 32%, or .32 (1 - 68%, or 1 - .68) of its original value.

Answer: The advisor is definitely wrong and should no longer be your advisor, in my opinion. 

RELATED QUESTIONS


Suppose that you have ​$14 comma 000 in a rather risky investment recommended by... (answered by stanbon)

Suppose that you have ​$14,000 in a rather risky investment recommended by your... (answered by stanbon,ikleyn)

Suppose that you have $10,000 in a rather risky investment recommended by your financial... (answered by josmiceli,MathTherapy)

Suppose that you invest $7,000 at 6% interest, compound quarterly, for 5 years. use Table  (answered by ewatrrr,Theo,MathTherapy)

Suppose you play a game with your friends. You tell your friends to each pick a number,... (answered by Boreal)

Suppose you play a game with your friends. You tell your friends to each pick a number,... (answered by josgarithmetic)

Your professor tells you that if you score an 85 or better on your midterm exam, then you  (answered by ikleyn)

You are the owner of four Taco Bell restaurant locations. You have a business loan with... (answered by CPhill)

You want to obtain a sample to estimate how much parents spend on their kids birthday... (answered by Boreal)