Take the 2-minute tour ×
Mathematics Stack Exchange is a question and answer site for people studying math at any level and professionals in related fields. It's 100% free, no registration required.

If you had an investment and you consistently lost 5% of it per year for 6 years, how do you find the total percentage loss, without knowing the original investment?

share|improve this question
add comment

1 Answer

up vote 3 down vote accepted

Say that the amount of the original investment is $x$. Losing $5$% of it is multiplying it by $0.95$, so after the six years you’re down to $0.95^6x$, and you’ve lost $x-0.95^6x=\left(1-0.95^6\right)x$. As a fraction of your original investment this is

$$\frac{\left(1-0.95^6\right)x}x\;.$$

Now just simplify and convert to a percentage.

share|improve this answer
    
Thanks! That worked perfectly. –  Tyler Zika Dec 10 '12 at 6:00
    
@Tyler: You’re welcome! –  Brian M. Scott Dec 10 '12 at 6:00
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.