A company for example makes 100% profit in the first year and makes a loss of 50% in the second year.
How much avg profit/loss did the company make in these two consecutive years??

To calculate the average profit or loss over two consecutive years where the company makes a **100% profit** in the first year and a **50% loss** in the second year, we need to follow this approach:

1. Let's assume the initial amount is **$100** for simplicity.
   
   - After the first year (100% profit):
     \[
     100 + 100\% \times 100 = 100 + 100 = 200
     \]
     So, the company ends up with **$200** after the first year.

2. In the second year, the company suffers a **50% loss**:
     \[
     200 - 50\% \times 200 = 200 - 100 = 100
     \]
     After the second year, the company is back to **$100**.

### Average Profit/Loss:

Since the company started with $100 and ended with $100 after two years, there was **no net change** in the company's value over the two years. Hence, the average profit/loss over the two years is **0%**.

### Conclusion:
Even though there was a 100% profit in the first year and a 50% loss in the second year, the **average profit/loss over the two years is 0%**.

Would you like more details on this? Here are some related questions:

1. What if the second-year loss was 60% instead of 50%?
2. How do different initial amounts affect the average profit/loss?
3. What is the impact of continuous compounding in such profit-loss scenarios?
4. How can we use geometric mean to calculate the average growth rate?
5. How would the calculation change if the losses and profits were compounded quarterly?

**Tip:** Always consider the **starting point** when calculating percentage-based changes to avoid misleading conclusions.

A company for example makes 100% profit in the first year and makes a loss of 50% in the second year. How much avg profit/loss did the company make in these two consecutive years?

Learn how to calculate the average profit or loss when a company experiences 100% profit in the first year and a 50% loss in the second year. Understand how percentage-based changes can lead to a net zero profit/loss over two consecutive years. Suitable for students in Grades 6-8.

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