Question

last year, teresa opened an investment account with $5400. at the end of the year, the amount in the account had increased by 6%.
(a) fill in the blank to write the year - end amount in terms of the original amount. write your answer as a decimal.
year - end amount = \\(\square\\) × original amount
(b) use your answer in part (a) to determine the year - end amount in teresas account.
year - end amount: $\square

Explanation:

Step1: Convert 6% to decimal

$6\% = \frac{6}{100} = 0.06$

Step2: Find growth factor

$1 + 0.06 = 1.06$

Step3: Calculate year-end amount

$\$5400 \times 1.06 = \$5724$

Answer:

(a) 1.06
(b) 5724