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?
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.
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.