SAT Math Question (9) - Percents And How Stores Trick You!
Here is an awesome question that I actually had to use my knowledge of on the GRE (Graduate Readiness Exam). It tests mathematical abilities, as well as logic! Enjoy!
Percents
A store decides to mark up the price, x, of an item by 20%, but then lower the price by 20% of the new price. What is the new price, in terms of x?
Solution
So... The price only changes by 4%. Haha. Believe it or not corporate companies do this all the time, but no one knows the difference. They can even adjust the price to make it equal to the new price. It is a good sales tactic. Be careful! You don't want to support the tricksters!
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That's one good example of why understanding percentages is important as it pertains to money. I'll give another one that has [since the turn of the millennium] hit a lot of ordinary working Americans hard...
Someone who has a retirement account from work will likely have some portion of it (X dollars) vested in the equity markets. Maybe they rode a good wave and saw their X-dollar portfolio increase by 50% before the tech or housing bubble burst and caused their portfolio to lose 50% of its value. Alternatively, they might have experienced the bubble bursting first and thus their portfolio lost 50% of its value, before recovering with a 50% increase to their portfolio's value afterwards. Unfortunately, either way, the end result is the same...
If the rise came before the bubble burst, the person's current portfolio value can be calculated as 1.5X * .5 = 0.75X.
If the bubble burst first and then the recovery occurred afterwards, the person's current portfolio value is represented as 0.5X * 1.5 = 0.75X.
Either way, they're left with 75% of their original stake, a net loss of 25%.
It also makes for a good illustration of why it can be very difficult to recover from losses in the stock market.
Yes! It is a Communative or Abelian operation! I noticed that too! Haha. Good thing to point out @doughtaker!
Great post and I wish steemit had a sticky or pin option because this is one of those special posts. ??
Thank you @fantasticmonkey! Glad you've enjoyed it! More to come!
Hahaha.... You are great one guy... I don't know about it before. Good job buddy....
Thank you joe! Glad to share with you!
Haha.... You always have good words. 😘😘😘😘
nice info hans! i don't know if you remember me the one you help me get to my status now when i am a beginner! and i thank you for that!
Marlon we are same. I always helped by @hansenator. He is good guy. Thanks my friends....
yes i agree! he's the man!!!
I remember you! No problem marlon241982. Thank you for supporting me as well! Thank you both actually!
;) thanks man!
hey hans... i'm sorry but can i have another favor? hehe! please upvote my entry for this link
https://steemit.com/contest/@jerrybanfield/usd100-graphic-design-contest-make-my-first-header
the price is 100sbd, my work is good but no upvote... if it's ok... ;)
Sure man will do! Good luck!
;)