Question

Marc wishes to invest in a stock with a 10% return annually. How much money will he have at the end of the year

Answer 1

At the end of the year, Marc will have 1.10 times the amount invested

Explanation:

Let

x -----> the amount that Marc wishes to invested

Remember that

`100\%+10\%=110=110/100=1.10`

At the end of the year the amount of money will be the amount invested multiplied by 1.10

so

1.10x

therefore

At the end of the year, Marc will have 1.10 times the amount invested

Alternative Method

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=1\ year\\ P=\$x\\ A=?\\r=10\%=10/100=0.10`

substitute in the formula

`A=x(1+0.10*1)`

`A=x(1.10)`

`A=1.10x`