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Question

A 500investmentaccountdecreases102,theaccountbalanceincrease102$?

A
450
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B
495
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C
505
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D
510
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E
550
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Solution

The correct option is B 495
Investment decreases 10% in first year.
Investment for 1st year = $(500500×10100)=$500$50=$450.
Investment increases 10% in second year.
Investment for 2 years = $(450+450×10100)=$450+$45=$495.
Investment after 2 years will be $495.

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