If you invested $100 right now and earned a 10 percent return in your first year and then lost 10 percent in year 2, how much money would you have at the end of year 2
Business · High School · Tue Nov 03 2020
Answered on
Given the statement:
If you invested $100 right now and earned a 10 percent return in your first year and then lost 10 percent in year 2
Determine how much money is left.
Solution:
Convert first the percentage into decimal. In converting a percentage into decimal, divide the percentage by 100, hence in converting a decimal to percentage, multiply the percentage by 100.
= 10/100
= 0.1
We know than 10 percent of 100 is 10, therefore we will add 10 to the given amount since it is stated that during the first year, the money earned 10%
= $10 + $100
=$110
Now we must take 10% of 110 and subtract it to 110 in order to get the value for the 2nd year.
= (.1)($110)
=$11
= $110 - $11
= $99
Final answer:
The amount of money left on the 2nd year is $99