Can you figure it out?

Former_MSE_Andrea

Poll started 26 April 2005. Can you figure it out? This isn't an opinion poll, but a test to see how many people can figure out some basic, but not straightforward money sums. Which of the following gives the best return? The stockmarket....

a. rises 10% a year for 5 years then drops 10% a year for 5 years 30.1% - (457 Votes)
c. stays the same 26.5% - (402 Votes)
d. all are equal 24.7% - (374 Votes)
b. drops 10% a year for 5 years then rises 10% a year for 5 years 18.4% - (279 Votes)

Total Votes: 1514

divadee

MSE_Andrea wrote:

Poll started 26 April 2005. Can you figure it out? This isn't an opinion poll, but a test to see how many people can figure out some basic, but not straightforward money sums. Which of the following gives the best return? The stockmarket....

a. rises 10% a year for 5 years then drops 10% a year for 5 years 30.1% - (457 Votes)
c. stays the same 26.5% - (402 Votes)
d. all are equal 24.7% - (374 Votes)
b. drops 10% a year for 5 years then rises 10% a year for 5 years 18.4% - (279 Votes)

Total Votes: 1514

but which one is the right answer andrea dont keep us in suspense

Former_MSE_Andrea

The answer will be in the email.




















Oh ok. It's c. Stays the same

H2SO4

Just looked at the e-mail, and here's my explanation of why the correct one is the correct one:
It's pretty obvious really because:
100+10%=110 110-10%=99 (so roughly 95 after 5up + 5down)
100-10%=90 90+10%=99 (so roughly 95 after 5down + 5up)
And
100=100 (so stays 100)

angelatgraceland

Well here is an easy way to work things out. Suppose you start off with £10. (example a)
Add 10 pc =11.00
+another 10pc =12.10 (you are adding 10pc of £11)
+another 10pc=13.31(you are adding 10pc of £12.10)
add another 10pc =14.64
add 10pc=16.10
-10pc=14.49
-10pc=13.04
-10pc=11.74
-10pc=10.56
-10pc=9.50
Hope that makes sense to those who dont find maths easy. I always work around a small simple figure on these things so that I can "see what is happening" with the figures. This helps you to understand in the longterm.