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Two years ago, Arthur gave each of his five children 20 percent of his fortune to invest in any way they saw
fit. In the first year, three of the children, Alice, Bob, and Carol, each earned a profit of 50 percent on their
investments, while two of the children, Dave and Errol, lost 40 percent on their investments. In the second
year, Alice and Bob each earned a 10 percent profit, Carol lost 60 percent, Dave earned 25 percent in profit,
and Errol lost all the money he had remaining. What percentage of Arthur's fortune currently remains?
  • a)
    93%
  • b)
    97%
  • c)
    100%
  • d)
    107%
  • e)
    120%
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Two years ago, Arthur gave each of his five children 20 percent of his...
Percentage problems involving unspecified amounts can usually be solved more easily by using the number 100. If Arthur's fortune was originally $100, each of his children received $20.
Let's see what happened to each $20 investment in the first year:
Alice:  $20 + $10 profit = $30
Bob:  $20 + $10 profit = $30
Carol:  $20 + $10 profit = $30
Dave:  $20 - $8 loss = $12
Errol:  $20 - $8 loss = $12
We continue on with our new amounts in the second year:
Alice:  $30 + $3 profit = $33
Bob:  $30 + $3 profit = $33
Carol:  $30 - $18 loss = $12
Dave:  $12 + $3 profit = $15
Errol:  $12 - $12 = 0
At the end of two years, $33 + $33 + $12 + $15 = $93 of the original $100 remains.
The correct answer is A. 
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Two years ago, Arthur gave each of his five children 20 percent of his fortune to invest in any way they sawfit. In the first year, three of the children, Alice, Bob, and Carol, each earned a profit of 50 percent on theirinvestments, while two of the children, Dave and Errol, lost 40 percent on their investments. In the secondyear, Alice and Bob each earned a 10 percent profit, Carol lost 60 percent, Dave earned 25 percent in profit,and Errol lost all the money he had remaining. What percentage of Arthur's fortune currently remains?a)93%b)97%c)100%d)107%e)120%Correct answer is option 'A'. Can you explain this answer?
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