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In 2004, Cindy had $4000 in a mutual fund account. In 2005, the amount in the same account was $5000. If the percent increase from 2004 to 2005 was the same as the percent increase from 2005 to 2006, how much did Cindy have in this account in 2006?
Title
In 2004, Cindy had mutual fund
Your Result
Correct
Difficulty
Easy
Your Pace
0:01
Others' Pace
1:11
Video Explanation
Text Explanation
First we need to figure out the percent increase from 4000 to 5000. That's a difference of 1000, and 1000 is 1/4 of the starting amount, 4000, so that's a 25% increase. From 2004 to 2005, the mutual fund had a 25% increase (not shabby at all!) Then from 2005 to 2006, they had another 25% increase. Now, the starting amount is 5000. One quarter of 5000 is 1250, so that's the dollar amount of the increase. The final amount would be 5000 + 1250 = 6250, answer = C
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