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In 2004, Cindy had $\$ 4000$ in a mutual fund account. In 2005, the am
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26 Jan 2026, 02:52
26 Jan 2026, 02:52
Expert Reply
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Question Stats:
99% (00:55) correct
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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?
A, $5800
B. $6000
C. $6250
D. $7500
E. $9000
A, $5800
B. $6000
C. $6250
D. $7500
E. $9000
- Part of the project: GRE Daily Quant Challenge - Topic-Wise 2025!!!
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In 2004, Cindy had $\$ 4000$ in a mutual fund account. In 2005, the am
[#permalink]
08 Feb 2026, 08:28
08 Feb 2026, 08:28
Expert Reply
1. Find the Percent Increase (2004 to 2005)
The formula for percent increase is:
$$
\(\text { Percent Increase }=\frac{\text { New Value }- \text { Old Value }}{\text { Old Value }} \times 10\)0
$$
Plugging in the numbers:
$$
\(\text { Increase }=\frac{5000-4000}{4000}=\frac{1000}{4000}=\frac{1}{4}=25\) %
$$
2. Apply the Same Increase to 2006
The problem states the percent increase from 2005 to 2006 is also $\(\mathbf{2 5} \boldsymbol{%}\)$. We calculate $25 %$ of the 2005 balance $ 5000 and add it to that balance:
- $\(\mathbf{2 5} \boldsymbol{\%}\)$ of $\(\mathbf{\$ 5 0 0 0}\)$ :
$$
\(0.25 \times 5000=1250\)
$$
- Total for 2006:
$$
\(5000+1250=6250\)
$$
The formula for percent increase is:
$$
\(\text { Percent Increase }=\frac{\text { New Value }- \text { Old Value }}{\text { Old Value }} \times 10\)0
$$
Plugging in the numbers:
$$
\(\text { Increase }=\frac{5000-4000}{4000}=\frac{1000}{4000}=\frac{1}{4}=25\) %
$$
2. Apply the Same Increase to 2006
The problem states the percent increase from 2005 to 2006 is also $\(\mathbf{2 5} \boldsymbol{%}\)$. We calculate $25 %$ of the 2005 balance $ 5000 and add it to that balance:
- $\(\mathbf{2 5} \boldsymbol{\%}\)$ of $\(\mathbf{\$ 5 0 0 0}\)$ :
$$
\(0.25 \times 5000=1250\)
$$
- Total for 2006:
$$
\(5000+1250=6250\)
$$
gmatclubot
In 2004, Cindy had $\$ 4000$ in a mutual fund account. In 2005, the am [#permalink]
08 Feb 2026, 08:28
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