Calculating percentage change from loss and gain

Question

A bank makes a loss of $1,000,000$ in $2016$. In $2017$ it makes a profit of $1,000,000.$ Is it possible to calculate the increase in percentage profit from $2016$ to $2017$

Answer 1

We need capital of bank in $2016$ to find profit percentage. For example -

Case $1 -$ Suppose capital in 2016 is 4,000,000.

Profit $= 1,000,000$

Profit percentage $= 25\%$

Case $2 -$ Suppose capital in $2016$ is $5,000,000.$

Profit $= 1,000,000$

Profit percentage $= 20\%$

Answer 2

The 1,000,000 gain in 2017 cancels the 1,000,000 loss in 2016, putting the total amount of money in the bank back to where it started. So the percent increase in profit is zero.