Question

John contributed $3,000 to his Roth IRA last year. This year, he contributed $1,000 to his Roth IRA. What was the percent decrease to the nearest percent?

Answer 1

Last year contribution (L) = $ 3,000

This year contribution (T) = $ 1,000

Hence, percentage decrease = $\frac{T - L}{L} * 100 = \frac{1000-3000}{1000} *100 = \frac{-2000}{1000}*100 = -2*100$ = - 200 %

The negative sign shows the decrease in the percentage.

Hence, the percentage decrease was by 200 %.