Last year, it was bad news: the value of your investment plunged by 50%. This year was much better: your investment increased in value by 75%. Over the two-year period, by how many percent has the value of your investment decreased?

Value of invest that’s decreased by 12.5%

Step-by-step explanation:

To solve this question, we need to pick an arbitrary value for the initial investment amount.

Let’s pick a value of $1000

Last year, there was a plunge by 50%. This means 50% of the investment portfolio was lost. This mathematically means 50/100 * 1000 = $500. Amount remaining is also $500.

The second year, there was a boom by 75%.

The increment here is thus 75/100 * 500 = 375

Present amount in investment is thus : $500 + $375 = $875

We are asked to calculate percentage decrease total. That would be [(initial amount - present amount)/initial amount ] * 100%

That would be (1000-875)/1000 * 100% = 125/1000 * 100 = 12.5%

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step-by-step explanation: