Question

The Millers plan on retiring soon. When they were first married they purchased 1,000 shares in a mutual fund that was at that time paying $10 a share. Now, thirty years later it is paying $78 a share. What is the percent increase for the fund?

A) 6.8%
B) 7.8%
C) 78%
D) 680%

Answer 1

Answer: 6.8%

Explanation:

We need to find both percentage so we can determine the increase.

Finding percentage of $10 return: 1% return

Finding percentage of $78 return: 7.8% return

To find the percent increase we do 7.8%-1.0% = 6.8%