Question

PLEASE HELP!!

You invest $1,000 in a fund. You check your statement at the end of April and you have lost 13%. When the statement for May comes, you see you have gained 13% in May. What is the value of your account? Round to the nearest dollar.

a) $850
b) $917
c) $983
d) $1,057

Answer 1

Your loss of 13% means the value of the fund has been multiplied by
100% - 13% = 87% = 0.87
Your gain of 13% means the value of the fund has been multiplied by
100% + 13% = 113% = 1.13

Over the 2-month period, your fund's value has been multiplied by the product of these, so is
$1000·0.87·1.13 ≈ $983.10

The appropriate choice is ...
c) $983