Question

Suppose that you have ​$11 comma 000

Answer 1

Answer:

The financial advisor is not using percentage properly.

Percentage loss=2%

Step-by-step explanation:

original amount invested=$11000

By the end of the first year, there was a decrease by 30% over the original amount.

This implies that the amount invested at after the end of the first year or at the beginning of the second year

$= \frac{70}{100} \times 11000$

=$7,700

This amount has increased by 40%

$= \frac{140}{100} \times7700$

=$10,780

The financial advisor is not using percentage properly.

This is because the decrease was on the original amount meanwhile the increase was not on the original amount. The increase was rather on an amount less than the original amount .

Since the original amount invested is greater than the amount at the end of the second year, there was a loss

Hence percentage loss

$=\frac{11000 - 10780}{1100} \times 100\%$

$\frac{220}{11000}\times100\% = 2\%$