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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
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?
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