Question

Mia invests $5,000 in an index fund. After 1 year, the fund's share price has increased by 8%. How much did Mia gain?

Answer 1

Answer: In the end, she has $5400 in total, so she must gain $400 on her investment.

Explanation:

8% is 0.08 >>> add 1 to it = 1.08

5000*1.08 = 5400

or the other way to do this is 5000*0.08 = 400 and then 5000+400=5400

Hope this helps!