Mr Tan invests $2 400. In January, his investment grows by 25%. In February, it loses 20% of its new value. What percentage of his original investment does he have at the end of February?
Show Worked Solution
Worked Solution
Step 1: After January gain of 25%: $2 400 × 1.25 = $3 000.
Step 2: After February loss of 20% on the new amount: $3 000 × 0.80 = $2 400.
Step 3: Final amount ÷ original = $2 400 ÷ $2 400 × 100% = 100%.
Key insight: A 25% gain followed by a 20% loss on the new value returns to the original because 1.25 × 0.80 = 1.00.
Correct answer: 100%
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