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A company’s profit increased by 15% in the first year decreased by 10% in the second year and increased again by 5% in the third year. If the initial profit was $100 000 what is the profit at the end of the third year?

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First year increase: $100 000 × 1.15 = $115 000

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Second year decrease: $115 000 × 0.90 = $103 500

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Third year increase: $103 500 × 1.05 = $108 675

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Therefore the profit at the end of the third year is $108 675.

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#### 108 675

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An investor splits $10 000 between two accounts: one earning 4% annual interest and the other earning 6%. If the total interest earned in one year is $520 how much was invested in each account?

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Let x be the amount invested at 4% so (10 000 - x) is invested at 6%.

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The interest equation is: 0.04x + 0.06(10 000 - x) = 520

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Simplify: 0.04x + 600 - 0.06x = 520

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Combine terms: -0.02x = -80

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Solve: x = 4 000

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