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explain why a %10 increase followed by a 10% decrease is less than the original amount if the original amount was positive.

User Kaushik J
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1 Answer

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Because a percentage increase or decrease is always a percentage
of the number you're operating on.

If you first increase by 10% and then decrease by 10%, then the
decrease is based on a larger number than the increase was, and
you lose more than you gained.

10% increase of $100 is $10 gained, giving you $110.
The 10% decrease is then based on $110, so you lose more than
you gained, and end up with only $99 .

Furthermore ... the Universe is a cruel place. If you were to decrease
first and increase last, the decrease would still operate on the larger
number, and you would still lose.


User Simon Tesar
by
7.8k points
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