Question

You expect that an investment could gain or lose as much as 20% in a year. Your investment is $5,000. What is the lowest value you expect at the end of the year?

Answer 1

Answer: $4000

Step-by-step explanation:

Answer 2

If you have $5,000 and expect that your investment could gain or lose as much as 20% let us get first the 20% value.

20% of 5,000 are 1,000. So, if the estimated lose is 20%, we just have to subtract 5,000 to 1,000.

That would be $4,000 as the lowest value at the end of the year.