hello
when an amount is increased each year by 5% and decreased by 4%, is it safe to say that this amount will increase 1% each year?
thanks
Only if the 4% decrease is off the original amount; not off the new amount that was increased by 5%
e.g. increasing $\displaystyle 100$ by $\displaystyle 5\%$ gives $\displaystyle 105$ if you then decrease this amount by $\displaystyle 4\%$ you get $\displaystyle 100.8$, whereas increasing $\displaystyle 100$ by $\displaystyle 1\%=101$
yes, the changes (both increase and decrease) will be calculated on the same original amount each year
so, the next year, there will be an increase of 101 by 5% and a decrease of 101 by 4% at the same time (increase of 5.05 and decrease of 4.04, which means increase of 1.01, which means 1% increase)
and so on
so it's safe to say so
thanks