Question

Last year, Diane opened an investment account with $5600. At the end of the year, the amount in the account increased by 7.5%. How much is this increase in dollars? How much money was in her account at the end of last year?

a) $420 increase, $6020 at the end of last year
b) $420 increase, $5220 at the end of last year
c) $4200 increase, $10,800 at the end of last year
d) $4200 increase, $9800 at the end of last year

Answer 1

The increase in dollars is $420 and the amount in her account at the end of last year was $6020.

Step-by-step explanation:

To calculate the increase in dollars, we can multiply the original amount by the percentage increase. In this case, the original amount is $5600 and the increase is 7.5%.
Increase in dollars = $5600 x (7.5/100) = $420
So, the increase in dollars is $420. To find the amount of money in her account at the end of last year, we can add the increase to the original amount.
Amount at the end of last year = $5600 + $420 = $6020