Question

michael wittry has been investing inhis roth IRA retirement account for 20 years. Two years ago his account was worth $215,658. after losing 1/3 of its origional value, it then gained 1/2 of its new value back, what is the current value of his roth IRA?

Answer 1

Let's say

a = 215,658

ok... so.. he first lost 1/3 of that

$\bf \textit{\underline{lost} }\frac{1}{3}a\qquad \qquad a-\cfrac{1}{3}a\implies a-\cfrac{a}{3}\implies \cfrac{3a-a}{3}\implies \cfrac{2a}{3} \\\\\\ \textit{then he \underline{gained} }\frac{1}{2}\textit{ of }\frac{2a}{3}\qquad \qquad \cfrac{2a}{3}+\cfrac{\frac{2a}{3}}{2}\implies \cfrac{\frac{2a}{3}}{\frac{2}{1}} \\\\\\ \cfrac{2a}{3}+\cfrac{2a}{3}\cdot \cfrac{1}{2}\implies \cfrac{2a}{3}+\cfrac{2a}{6}\implies \cfrac{4a+2a}{6} \\\\\\ \cfrac{6a}{6}\implies \boxed{a}\implies 215,658$


so, his nickname might just be even steven, because, he ended up with the same original amount after the 1/2 bump.