how many percent has the value of your investment decreased?

Question

Last year, it was bad news: the value of your investment plunged by 50%. This year was much better: your investment increased in value by 75%. Over the two-year period, by how many percent has the value of your investment decreased?

Answer 1

Megan, if you take 50% away, you have 50% left. If you add 75%, you have 175%.

 

So, we have 175% of the 50% of the original amount.

 

1.75(.5) = 0.875 = 87.5%.

 

You've decreased by 100 - 87.5 = 12.5%