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Bunuel
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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle 20 Nov 2022, 12:00
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55% (hard)

Question Stats:

67% (02:13) correct 33% (02:30) wrong based on 227 sessions

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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle projects gains of 20 percent for the first year and 10 percent for the second year. If at the end of the two year period, the value of mutual fund has actually decreased by 1 percent, what percent of the projected value of the investment was the actual value of the investment?

A. 33

B. 44

C. 75

D. 76

E. 99
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C
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hloonker
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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle 23 Nov 2022, 09:47
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Hi Banuel - the question is not clear. is it 20 percent in the first year and then 10 percent of initial investment plus 20 percent. which is to say compounded growth?

also can someone please explain the solution to me?
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kratos0906
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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle 30 Nov 2022, 00:02
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Projected Value:
After 1st year: 10k + 0.2*10k = $12k
After 2nd year: 12k + 0.1*12k = $13.2k

Actual Value:
Actual Value = 10k - 0.01*10k = $9.9k

So, percent = (9900/13200)*100 = 75%
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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle 01 Dec 2022, 05:06
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Consider investment = 100. As percentages would be easier to calculate on 100.
Hence after year 1, 100 --> 20% = 100 + 20 = 120
year 2, 120 --> 10% = 120 + 12 = 132
But the actual number has decreased by 1% --> 100 - 1 = 99.
Now let 132*x = 99 --> x = 99/132. divide it by 11, we get 9/12 = 3/4 = 0.75
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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle 06 Aug 2024, 23:37
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Bunuel
Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle projects gains of 20 percent for the first year and 10 percent for the second year. If at the end of the two year period, the value of mutual fund has actually decreased by 1 percent, what percent of the projected value of the investment was the actual value of the investment?

A. 33

B. 44

C. 75

D. 76

E. 99
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­
10000 x 1.2 x 1.1 = 13200 (Projected Value)
10000 x 0.99 = 9900 (Actual Value)

What percent of the projected was the actual?
(Actual/projected) x 100

=99/132
=(3/3)/(4/3) ....approximation or 9/12
=3/4
=0.75
=75%
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Kyle has convinced his client to invest $10,000 in a mutual fund. Kyle 13 Aug 2024, 14:27
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Calculations, fairly simple..... wording, not so much.
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