Percentages

SAT Math· difficulty 5/5

A \5{,}000investmentearnsinvestment earns8%inyear1,losesin year 1, loses5%inyear2,andearnsin year 2, and earns10%$ in year 3. What is the value at end of year 3?

  • A

    $5{,}642

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  • B

    $5{,}700

  • C

    $5{,}642

  • D

    $5{,}643

Explanation

50001.080.951.10=50001.1286=56435000 \cdot 1.08 \cdot 0.95 \cdot 1.10 = 5000 \cdot 1.1286 = 5643. So approximately \5{,}643$.

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