Suppose that you have

$10,000

in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by

60%

of its original value. During the second year, your investment at the end of year one increases by

70%.

Your advisor tells you that there must have been a

10%

overall increase of your original

$10,000

investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original

$10,000 investment?