A company's annual report states that profit increased by 15% from Year 1 to Year 2, and then decreased by 10% from Year 2 to Year 3. If the profit in Year 1 was $200,000, what was the profit in Year 3?
✓ Correct Answer: Option B
Year 2 profit = $200,000 * 1.15 = $230,000. Year 3 profit = $230,000 * (1 - 0.10) = $230,000 * 0.90 = $207,000.