Question

Last year, John opened an investment account with $7,400. At the end of the year, the amount in the account had decreased by 7.5%. How much is this decrease in dollars? How much money was in his account at the end of last year?

Answer 1

John's investment account decreased by $555 over the year, resulting in a year-end balance of $6,845.

Step-by-step explanation:

Last year, John opened an investment account with $7,400. The account's value decreased by 7.5% by the end of the year. To calculate the decrease in dollars:

• Find 7.5% of $7,400 by multiplying the initial amount by the percent decrease (expressed as a decimal).
• The calculation would be $7,400 × 0.075.
• This results in a decrease of $555.

To find how much money was in the account at the end of the year, we subtract the decrease from the initial amount:

• $7,400 - $555 = $6,845.

Therefore, the decrease in dollars was $555, and the amount in John's account at the end of last year was $6,845.