Question

investment account opened with $7500, at the end of the year the amount in the account had increased by 23.8% How much is this increase in dollars? how much money was in the account at the end of last year?

Answer 1

Hello!

First, let's analyze the exercise and write important information:

• investment account ,opened with $7500

,

• at the ,end of the year,, the amount in the account had, increased by 23.8%

Knowing this information, we are able to solve your exercise, look:

The account was opened with 7500 (that means 100%).

As there was an increase of 23.8%, we can say that after one year the account had 123.8%.

So, let's solve it using the rule of three:

$\frac{7500\rightarrow100}{x\rightarrow123.8}$

Let's multiply it across:

$\begin{gathered} (100\cdot x)=(7500\cdot123.8) \\ 100x=928,500 \\ x=\frac{928,500}{100} \\ \\ x=9,285 \end{gathered}$

So at the end of the year, there were $9285 in the account

To obtain the increase in one year, we can subtract the final value by the initial value, look:

$9285 - $7500 = $1785