Question

Tina invested $30,000 in a stock. In the first year, the stock increased in value by 10%. In the second year, the stock decreased in value by 20%. What percentage gain is requird in the third year for Tina's stock to return to its original value?

Answer 1

Let x be the factor by which the value changes in the third year. If you end up with the same amount after three years,

1.1 * 1.2 * x = 1

x = 0.7576
That would require a 24.24% LOSS in the third year

Answer 2

13.6%