Question

The value of Maria's investments increased by 40% in the first year and by a further 20% in the second year. The value of Laura's investments grew 20% in the first year, followed by a gain of 40% in the second year. Both Maria and Laura started out with a $10,000 investment. Find Maria's and Laura's increase.

Answer 1

Maria's investments increased by $16,800 and Laura's investments also increased by $16,800.

Step-by-step explanation:

Maria's investments increased by 40% in the first year and by a further 20% in the second year. To calculate the increase, we start with her initial investment of $10,000 and multiply it by 1.4 (to account for the 40% increase in the first year), then multiply the result by 1.2 (to account for the additional 20% increase in the second year).

So, Maria's increase can be calculated as follows:

$10,000 * 1.4 * 1.2 = $16,800

Therefore, Maria's investments increased by $16,800.

Laura's investments grew 20% in the first year and then by an additional 40% in the second year. Using a similar calculation, we can find Laura's increase:

$10,000 * 1.2 * 1.4 = $16,800

Therefore, Laura's investments increased by $16,800.