Question 1
The graph shows the level of subsidized daycare spending in a foreign country for the period 1995-1999. Use the graph to answer the question.
Find the percent increase in daycare spending from 1995 to 1996. Round to the nearest percent.
◦ 12%
◦ 0.11%
◦ 11%
◦ 13%
Question 2
Suppose that you invest $5000 in a risky investment. At the end of the first year, the investment has decreased by 70% of its original value. At the end of the second year, the investment increases by 80% of the value it had at the end of the first year. Your investment consultant tells you that there must have been a 10% overall increase of the original $5000 investment. Is this an accurate statement? If not, what is your actual percent gain or loss on the original $5000 investment. Round to the nearest percent.
◦ A 10 % increase of the original investment is not correct. The true result is a gain of 45%.
◦ A 10 % increase of the original investment is not correct. The true result is a loss of 45%.
◦ A 10 % increase of the original investment is not correct. The true result is a loss of 46%.
◦ A 10 % increase of the original investment is correct.
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