## Thinking Mathematically (6th Edition)

We can find the amount that the original investment decreased. $decrease = (0.30)(\$10,000) = \$3000$ We can find the value of the original investment after a decrease of 30%. $value = \$10,000 - \$3000 = \$7000$We can find the amount that the first-year value increased.$increase = (0.40)(\$7,000) = \$2800$We can find the value of the investment after an increase of 40%.$value = \$7,000 + \$2800 = \$9800$ The original investment decreased by $\$200$. We can express this decrease as a decimal.$\frac{\$200}{\$10,000} = 0.02$To express a decimal as a percent, we can move the decimal point two places to the right.$0.02 = 2\%\$ The financial adviser is not using percentages properly. The actual percent loss of the original investment is 2%.