Answer:
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%
