Percent problems and financial mathematics

1003090506

Level: 
B
The interest rate on deposits in a certain bank initially equaled \( 5\% \) per year but then it was decreased by \( 20\% \). By how many percentage points has the interest rate decreased?
by \( 1\) percentage point
by \( 1.2 \) percentage point
by \( 2 \) percentage points
by \( 2.1 \) percentage point

2000016301

Level: 
B
Investors Thomas and Paul invested the same amount. After the first year, the value of Thomas's investments decreased by \(5{\small{{}^\text{o}\mkern-5mu/\mkern-3mu_\text{o}}}\), but after the following year, their value increased by \(5{\small{{}^\text{o}\mkern-5mu/\mkern-3mu_\text{o}}}\). Paul's investments were more stable. After the first year, the value of his investments increased by \(2{\small{{}^\text{o}\mkern-5mu/\mkern-3mu_\text{oo}}}\), but after the second year, it decreased again by \(2{\small{{}^\text{o}\mkern-5mu/\mkern-3mu_\text{oo}}}\). Determine the true statement about the value of Thomas and Paul's investments two years after the investment.
Paul's investments will have a higher value.
Thomas's investments will have a higher value.
The values of both investments will again be the same.
It is not possible to determine the ratio of the values of Paul and Thomas's investments from the given data.