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):
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(10556)  (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.
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