Using of or more than with percentages

Price: $5 USD

Question description

"If the profits in your consulting business increase by 6% one year and decrease by 2% the following year, your profits are up by 4% over two years." 

State if the following statement is true or false, if false state the true change.

I know the statement in false but I cannot figure out how to determine the true change. My professor gave us the equation; new profit value=(100+P)%x(100-Q)%xoriginal profit value. I asked him what the original profit value is but he told me it does not enter in or we could just call it 100%. But every time I plug it into my calculator and enter it into my homework, it tells me it is incorrect. 

Tutor Answer

(Top Tutor) Daniel C.
School: Boston College
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