Question

If an investment decreases 1% the first year, 6% the second year and 9% the third year, what is the "average" percent decrease?

Answer 1

ANSWER-

To calculate the average percent decrease, we can take the arithmetic mean of the three percentage decreases:

Average percent decrease = (1% + 6% + 9%) / 3 = 5.33%

Therefore, the "average" percent decrease over the three-year period is approximately 5.33%.

Answer 2

The average percent decrease over the three years is 15.42%

Step-by-step explanation:

To find the average percent decrease, we need to find the overall percent decrease over the three years. Let's assume we start with $100.

After the first year, the investment decreases by 1%, which means we are left with $100 - 0.01($100) = $99.

After the second year, the investment decreases by 6%, which means we are left with $99 - 0.06($99) = $93.06.

After the third year, the investment decreases by 9%, which means we are left with $93.06 - 0.09($93.06) = $84.58.

The overall percent decrease can be calculated by finding the difference between the starting value of $100 and the final value of $84.58, which is $100 - $84.58 = $15.42.

To find the average percent decrease, we divide this difference by the starting value and multiply by 100 to get:

($15.42/$100) x 100 = 15.42%

Therefore, the average percent decrease over the three years is 15.42%.