Last year, Frank opened an investment account with $6400. At the end of the year, the amount in the account had increased by 29.5%. How much is this increase in dollars? How much money was in his account at the end of last year?

Question

Arthur Ramos

Mathematics

27 September, 07:28

Last year, Frank opened an investment account with $6400. At the end of the year, the amount in the account had increased by 29.5%. How much is this increase in dollars? How much money was in his account at the end of last year?

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Oswaldo Wallace · Answer 1

This is an example of a geometric equation. We can write this as:

y=6400 (1.295) ^x where x is the number of years past.

In this case, x is one, as one entire year passed.

Do the math, and you get 8288 at the end of the year.

If you subtract 6400 from 8288, you get 1888. That is the difference.