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

Answer:

$Earnings = 650$

$New\ Value = 5650$

Step-by-step 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:

$New\ Value = Amount + Earnings$

$New\ Value = 5000 + 650$

$New\ Value = 5650$