Math 101 HELP I have tried so many formulas and can't seem to get it

Question

If the profits in your consulting business increase by 17% one year and decrease by 7% the following year, your profits are up by 10% over two years.

Answer 1

Is this a true/false question? If so, this is a false statement. Make up a specific example (counter-example) to prove the point. For example, suppose the profits are $1000. What would a 17% increase amount to?

1000(1.17) = 1170.

Now what would be a 7% decrease on that amount?

1170(.93) = $1088.10

A 10% increase over 2 years would be:

1000(1.10)= 1100 which is not the same as 1088.10.

The actual 2 year increase would be (1088.10 - 1000)/1000.

You can do all of the above using "x" instead of $1000 as the starting profit.