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?
Tell me more
×
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.
|
|
|
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. |
|||||
|
|
