Percent Increases and Decreases

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The value of an investment increased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What percent of the original value is the current value of the investment?

Review: Percent Increases and Decreases


Explanation

In this question, the correct answer does not depend on the value of the investment, so we can work with the case in which the investment is $100. In the first year, it increases by 10% to $110. Then it increases by 5%, and 5% of half of 10%, and we can move the decimal point to see that 10% of 110 is 11. So it increases by 5.5 from $110 to $115.5. In the final year, it decreases by 10%. Moving the decimal point, we can see that 10% of $115.5 is $11.55. Therefore, we have



The current value is $103.95, and the original value was $100. So the current value is 103.95% of the original value.

The correct answer is (B).


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