You have just received word that your original investment of $650 has increased in value by 17%. What is the value of your investment today?

Question

I have no idea how to work this problem. Someone show me how to please

Answer 1

For your introduction to this type of problem you should solve it this way so you understand how it works:

Since you started with $650 and it went up by 17%, you can calculate what 17% of $650 is, then add that to the starting amount.

17% is the same as 0.17, so 17% of $650 is:
$650 * 0.17 = $110.50

This is the amount of the gain.  Just add it to $650:
Amount today = $650 + $110.50 = $760.50

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After you get a little practice with doing it that way, you can speed it up a bit.

As of today you still have 100% of the original investment, plus 17% more.

You can add 100% + 17% to get 117%. Multiply that times the original investment.

117% = 1.17

$650 * 1.17 = $760.50

Answer 2

Hi Elizabeth,

In order to solve this problem we would first need to find out what 17% of the original value is in dollars. This can be found by:

• 650 x (17/100) = 650 x 0.17 = $110.5

What this is telling us, is that the original investment has increased by $110.5. Therefore our final answer will be:

• 650 + 110.5 = $760.5

Hope this helps!