Question

Last year, Frank opened an investment account with $6400 . At the end of the year, the amount in the account had increased by 29.5% . How much is this increase in dollars? How much money was in his account at the end of last year?

Answer 1

This is an example of a geometric equation. We can write this as:


y=6400(1.295)^x where x is the number of years past.

In this case, x is one, as one entire year passed.

Do the math, and you get 8288 at the end of the year.

If you subtract 6400 from 8288, you get 1888. That is the difference.