Answered

Welcome to Westonci.ca, where curiosity meets expertise. Ask any question and receive fast, accurate answers from our knowledgeable community. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Suppose that you have $13,000 in a rather risky investment recommended by your financial advisor. During the first
year, your investment decreases by 40% of its original value. During the second year, your investment at the end of year
one increases by 50%. Your advisor tells you that there must have been a 10% overall increase of your original $13,000
investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your
original $13,000 investment?

Sagot :

Answer:

There is loss of 10%

Step-by-step explanation:

The total sum of money invested [tex]= 13000[/tex] dollars

In the first year, the Investment values  decreases by 40%. The final investment value after one year

[tex]\frac{(100-40)}{100} * 13000\\7800[/tex]

Now in the second year the investment increases by 50%. The final investment value after second year

[tex]\frac{100+50}{100} *7800\\1.5 * 7800\\11700[/tex]

The investment value after second year is less than that of total sum invested

% loss

[tex]\frac{13000-11700}{13000} * 100\\10[/tex]percent

There is loss of 10%

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.