If the profits in your consulting business increase by 5% one year and decrease by 3% the following year, your profits are up by % over two years. how do i solve this question?

Let the original profits be $x. 5% increase in profits will give us:
105/100×x=$1.05x
3% reduction in new profits ill give us the latest amount to be:
97/100×1.05x
=$1.0185x
comparing our new profits to our original amount of $x we shall have new percentage increase to be:
(1.0185x-x)/x×100
=1.85% 
Thus our final increase  1.85%