Question

Last year, Justin opened an investment account with $5400. At the end of the year, the amount in the account had increased by 6.5%. How much is this increase in dollars? How much money was in his account at the end of last year?

Answer 1

Increase in amount is
`\$351` and money in his account at the end of last year is
`\$5751`.

Solution:

Given that

Last year, Justin opened an investment account with
`\$5400`.

At the end of the year, the amount in the account had increased by
`6.5\%`.

Need to calculate amount increased in account and total amount of money at the end of the year. Invested Amount at the starting of the year AI = 5400

Increase in amount is
`6.5\%`

Amount increased =
`6.5\%` of Invested Amount at the starting of the year

`\begin{array}{l}{=6.5 \% \text { of } A_(I)} \\\\ {=(6.5)/(100) * 5400} \\\\ {=\$ 351}\end{array}`

Total amount in the end of the year = Invested Amount at the starting of the year + Amount increased = 5400 + 351 = 5751