Asked by Brianna Margaret on Jun 13, 2024
Verified
Does the combined effect of a 20% increase followed by a 20% decrease differ from the combined effect of a 20% decrease followed by a 20% increase? Justify your answer.
Combined Effect
The cumulative impact of multiple factors or actions taken together, rather than individually.
- Execute break-even assessments on investments subsequent to experiencing profits and deficits.
Verified Answer
FI
Fatima IsmailJun 20, 2024
Final Answer :
False
Explanation :
If you think of the relevant formula, Vf = Vi (1 + c1) (1 + c2), the order of the percent changes affects the order of multiplication. However, it is a basic axiom of mathematics that the order of multiplication does not affect the product.
Learning Objectives
- Execute break-even assessments on investments subsequent to experiencing profits and deficits.