SOLUTION: Kelly invested $20,000. The value decreased by 4% during the first month and increased by 5% the second month. What was the value of the investment at the end of the second month?

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Kelly invested $20,000. The value decreased by 4% during the first month and increased by 5% the second month. What was the value of the investment at the end of the second month?       Log On

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Question 1133799: Kelly invested $20,000. The value decreased by 4% during the first month and increased by 5% the second month. What was the value of the investment at the end of the second month?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
decrease % is decrease/original amount, and increase works the same way
4% decrease of $20000 is a loss of $800, so there is $19200 left.
A 5% increase is 5% of the beginning, which is now $19200, and that is $960.
The amount after the second month is $20160