the current value of an investment is 25% more than its initial value. The increase in value is $10 million. What was the initial value of the investment
Answers
Given : the current value of an investment is 25% more than its initial value. The increase in value is $10 million.
To Find : the initial value of the investment
Solution:
Let say the initial value of the investment = P million $
the current value of an investment is 25% more
Hence increase in investment value = (25/100) P = P/4 million $
The increase in value is $10 million
Equating both
=> P/4 = 10
=> P = 40 million $
the initial value of the investment = $40 million
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$ 40 million