document.write( "Question 1117802: Suppose that you have $14,000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 60% of its original value. During the second year, your investment increases by 70% of its first-year value. Your advisor tells you that there must have been a 10% overall increase of your original $14 comma 000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $14 comma 000 investment? \n" ); document.write( "

Algebra.Com's Answer #732943 by stanbon(75887) $\"\"$ $\"About$

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Suppose that you have $14,000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 60% of its original value. During the second year, your investment increases by 70% of its first-year value. Your advisor tells you that there must have been a 10% overall increase of your original $14,000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $14 comma 000 investment?
\n" ); document.write( "------
\n" ); document.write( "start:: 14000
\n" ); document.write( "aft 1 yr:: 0.4*14000 = 5600
\n" ); document.write( "aft 2 yr:: 5600+0.7*14000 = 15400
\n" ); document.write( "Note:: 10%*14000 = 1400 ; 14000+1400 = 15400
\n" ); document.write( "Advisor is correct.
\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H.
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