Question

Last year, Tony opened an investment account with $8400. At the end of the year, the amount in the account had decreased by 6.5%. How much is this decrease in dollars? How much money was in his account at the end of last year?

A. Decrease in amount: $546
B. Year-end amount: $7854
C. Both A and B
D. Neither A nor B

Answer 1

The decrease in Tony's investment account, due to a 6.5% decrease, was $546, resulting in a year-end balance of $7854. The correct answer to the question is both A and B.

Step-by-step explanation:

To calculate the decrease in dollars, we use the formula for percentage decrease:

Decrease in amount = Initial amount × (Percentage decrease / 100)

Given that Tony's initial investment was $8400 and it decreased by 6.5%, we apply the values:

Decrease in amount = $8400 × (6.5 / 100) = $8400 × 0.065 = $546

To find the year-end amount in Tony's account, we subtract the decrease from the initial amount:

Year-end amount = Initial amount – Decrease in amount = $8400 – $546 = $7854

Therefore, the decrease in the account was $546, and the amount in the account at the end of the year was $7854.

The correct answer to the student's question is C. Both A and B.