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12 January, 12:08

Explain why a %10 increase followed by a 10% decrease is less than the original amount if the original amount was positive.

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  1. 12 January, 12:33
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    Because a percentage increase or decrease is always a percentage

    of the number you're operating on.

    If you first increase by 10% and then decrease by 10%, then the

    decrease is based on a larger number than the increase was, and

    you lose more than you gained.

    10% increase of $100 is $10 gained, giving you $110.

    The 10% decrease is then based on $110, so you lose more than

    you gained, and end up with only $99.

    Furthermore ... the Universe is a cruel place. If you were to decrease

    first and increase last, the decrease would still operate on the larger

    number, and you would still lose.
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