An investment in a mutual fund increases by $12\%$ in a single day. If the value before the increase was $\$1{,}300$, what is the value after the increase?

The amount of increase is $12\%$ of $\$1{,}300$: $0.12 \times 1{,}300 = 156$. New value = old value $+$ increase $= 1{,}300 + 156 = \$1{,}456$. One-step shortcut: a $12\%$ increase multiplies the original value by $1 + 0.12 = 1.12$: $1{,}300 \times 1.12 = 1{,}456$ ✓. - Trap A ($\$1{,}156 = 1300 - 144$) confuses increase with decrease, or computes a wrong $12\%$. - Trap B ($\$1{,}312$) adds $12$ instead of $156$ (treating $12\%$ as $12$ dollars). - Trap D ($\$2{,}600$) doubles — a $100\%$ increase rather than $12\%$.