Question

Last year Brian opened an investment account with $5800. At the end of the year, the amount in the account had increased by 24.5%. How much is this increased in dollars? How much money was in his account at the end of last year?

Answer 1

Part a

How much is this increased in dollars?

Remember that

24.5%=24.5/100=0.245

so

Multiply the initial amount by the factor of 0.245, to obtain how much is increased

$5,800*0.245=$1,421

the answer part a is $1,421

Part b

How much money was in his account at the end of last year?

Adds $5,800 and $1,421

$5,800+$1,421=$7,221

the answer part b is $7,221