Question

Last year, Shen opened an investment account with $6600 . At the end of the year, the amount in the account had increased by 21%. What is the year end amount?

Answer 1

Solution: $ 7,986

Analysis:

We have an initial value of $ 6,600. According to the exercise, that amount increased by 21%. So, we need to find the new value including the increment.

We use the formula:

`\begin{gathered} Final\text{ }value=Initial\text{ }value\ast(1+increase\text{ }in\text{ }decimal) \\ Final\text{ }value=6,600\ast(1+0.21)=6,600\ast(1.21) \\ Final\text{ }value=7,986. \end{gathered}`