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The revenues of a company increased by 39% in year one and decreased by 25% in year two.What is the overall change over the two-year period?

 Oct 4, 2020
 #1
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Sorry, I'm trying to get the same kind of help. These word problems are really getting me. I wish you the best of luck.

 Oct 4, 2020
 #2
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You can do it in 2 different ways as follows:

 

1 - The first year, the revenues increased by 39% or 1.39

The second year, the revenues decreased by 25%, or 100% - 25% =75% =0.75

1.39 x 0.75 =1.0425 - 1 =0.425 x 100 =4.25%  increase, or net change over 2 years

 

2 - The first year, the revenues increased by 39% or 1.39

The second year, the revenues decreased by  25%, or 0.25 x 1.39 =0.3475

1.39 - 0.3475 =1.0425 - 1 =0.0425 x 100 =4.25% increase, or net change over 2 years.

 Oct 4, 2020
edited by Guest  Oct 4, 2020
 #3
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The revenues of a company increased by 39% in year one and decreased by 25% in year two.What is the overall change over the two-year period?

 

Pretend you start with $1

 

1 * 1.39 * 0.75 = 1.0425

 

So the increase is   0.0425 = 4.25%

 Oct 4, 2020

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