Question

Eric invested 5000 dollars in the stock market. The value of his stock increased by 13%. a) what is the amount earned from this investment?

b) what is the new value of the stock?

Answer 1

`Earnings = 650`

`New\ Value = 5650`

Explanation:

Given

`Amount = 5000`

`Rate = 13\%`

Solving (a): The earnings.

This is calculated as:

`Earnings = Amount * Rate`

`Earnings = 5000 * 13\%`

`Earnings = 650`

Solving (b): New Value

This is calculated as:

So, we have:

`New\ Value = Amount + Earnings`

`New\ Value = 5000 + 650`

`New\ Value = 5650`