Percent Pont Change

Question

State whether the following statement is true or false, and explain why. If the statement is false, state the true change.The cost of tuition at a college falls by 33% and then later rises by 33%. After the two changes in tuition, the cost is unchanged.

What is the change in tuition?

Answer 1

Do an example, if the tuition is $999

Now decrease it by 1/3 or 33%, you get 999 - (1/3)999 = 999-333 = $666

Now increase it by 1/3 or 33%, you get 666 + (1/3)666 = $888

we are now $999-$888 = $111 short !

This is a good example for investors who lose money making it much harder to break even again!