An investment is made in a business. In the first year, it gains 25%, in the second year, it loses 20%, and in the third year, it gains 10%. What is the overall gain or loss percentage?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 10% gain.
Assume initial investment = 100
After 3 years = 100 × (125/100) × (80/100) × (110/100) = 110
Gain = 110 - 100 = 10%