Question

last year trey opened an investment account with $8600. At the end of the year, the amount in the account had increased by 24.5%. How much is this increase in dollars? How much money was in his account at the end of last year?

Answer 1

The amount he opened the investment account with, his principal = $8600

This principal = 100% of his investment

If after a year the amount in his account increased by 24.5%, the total percentage now = 100 + 24.5 = 124.5%

By ratio, we can find the increase thus

`\begin{gathered} (8600)/(x)=(100)/(124.5) \\ x=10707\text{ dollars} \end{gathered}`

His increase = 10707 - 8600 = $2107

At the end of last year, he had $10707 in his account