Seth has some stock market investments that fluctuate in value. The value of one of his investments was $15,300 at the end of the day on Monday and $16,830 at the end of the day on Tuesday. The value of the investment decreased by the same percent on Wednesday that it increased on Tuesday. How much less was the investment worth at the end of the day Wednesday than it was at the end of the day on Monday?
quick way without calculations. You know a) is wrong although it seems intuitive because percentage losses are always greater in value than the same percentage gains. so a) or 0 is out
b) looks about right but lets look at the other choices
c) and d) did not follow the question because they reflect almost complete losses. We know the relative losses are small in this case about 1% difference between a 10 % drop and 10 % gain. If you lose 50 % of your investment it will take 100% gain to bring you back to even. if you lose 75% you’ll need 300% gain! While 100% gain just doubles your investment, where a 100% loss makes you broke.
1% loss requires 1% gain to bring back to even everyone assumes this for all but lookout
10% —————- 11.11%
25 % —————- 33,33%
50 % —————- 100%
75% —————- 300%
100% ————– never -infinity– you go hungry — rubber biscuit!