Question

Jessie invests \[\$ 3345\] in the stock market. Over \[3\] years she has this invested she gets an average return of \[7.8\% .\] How much will her investment be worth after three years?

Answer 1

Hint: To solve this question, we will take the percentage of annual return of capital invested multiplied by years for which the amount is invested and then add with the amount invested, we will get the total worth of investment by Jessie.

Complete step-by-step answer:
We have been given capital invested by Jessie in the stock market \[ = {\text{ }}\$ 3345\]
And the percentage she receives on average annual return over \[3\] years \[ = {\text{ }}7.8\% \]
Worth of total investment $ = $ (Percentage of investment given) years for which the amount is invested $ + $ invested amount
So, total investment worth after three years \[ = {\text{ }}(7.8\% \times 3345)3 + 3345\]
$\begin{gathered}
   = (\dfrac{{7.8}}{{100}} \times 3345)3 + 3345 \\
   = (260.91)3 + 3345 \\
   = 782.73 + 3345 \\
   = \$ 4127.73 \\
\end{gathered} $
Thus, Jessie’s total investment worth after three years is \[\$ 4127.73.\]

Note: Students should carefully solve the equations. For taking the percentage of a number we divide the number by \[100\] in place of \[\% \]symbol.