Question

Last year, Justin opened an investment account with $5400. At the end of the year, the amount in the account had increased by 6.5%. How much is this increase in dollars? How much money was in his account at the end of last year?

Answer 1

Increase in amount is $\ 351$ and money in his account at the end of last year is $\ 5751$.

Solution:

Given that  

Last year, Justin opened an investment account with $\ 5400$.

At the end of the year, the amount in the account had increased by $6.5\%$.

Need to calculate amount increased in account and total amount of money at the end of the year.  Invested Amount at the starting of the year AI = 5400

Increase in amount is $6.5\%$

Amount increased = $6.5\%$ of Invested Amount at the starting of the year

$\begin{array}{l}{=6.5 \% \text { of } A_{I}} \\\\ {=\frac{6.5}{100} \times 5400} \\\\ {=\ 351}\end{array}$

Total amount in the end of the year = Invested Amount at the starting of the year + Amount increased = 5400 + 351 = 5751