Question

If $7,000 decreases in the first year by 60% and then increases by 70% in the second year, what is the final value after two years?

Answer 1

To find the final value after two years, calculate the decrease and increase separately and then add them together.

Step-by-step explanation:

To find the final value after two years, we need to calculate the decrease and increase separately and then add them together.

To calculate the decrease of $7,000 by 60%, we multiply $7,000 by 0.4 (100% - 60%) to get $2,800.

To calculate the increase of $2,800 by 70%, we multiply $2,800 by 1.7 (100% + 70%) to get $4,760.

Finally, we add the decrease and increase together: $2,800 + $4,760 = $7,560.