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## Lucy invested $10,000 in a new mutual fund account exactly three years ago. The value of the account increased by 10 per ##### This topic has expert replies Legendary Member Posts: 2276 Joined: Sat Oct 14, 2017 6:10 am Followed by:3 members ### Lucy invested$10,000 in a new mutual fund account exactly three years ago. The value of the account increased by 10 per

by VJesus12 » Wed Feb 23, 2022 4:30 am

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B

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E

## Global Stats

Lucy invested $10,000 in a new mutual fund account exactly three years ago. The value of the account increased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the account today? (A)$10,350
(B) $10,395 (C)$10,500
(D) $11,500 (E)$12,705

Source: Official Guide

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### Re: Lucy invested $10,000 in a new mutual fund account exactly three years ago. The value of the account increased by 10 by [email protected] » Sat Feb 26, 2022 5:37 am VJesus12 wrote: Wed Feb 23, 2022 4:30 am Lucy invested$10,000 in a new mutual fund account exactly three years ago. The value of the account increased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the account today?

(A) $10,350 (B)$10,395
(C) $10,500 (D)$11,500
(E) $12,705 Answer: B Source: Official Guide Start:$10,000

First year +10%
10% of $10,000 =$1000
So, we get $10,000 +$1000 = $11,000 Second year +5% 5% of$11,000 = $550 So, we get$11,000 + $550 =$11,550

Third year -10%
10% of $11,550 =$1,155
So, we get $11,550 -$1155 = \$10,395