CT3 Math109: Consumer Mathematics Write a report that answers the following ques
ID: 3027678 • Letter: C
Question
CT3 Math109: Consumer Mathematics
Write a report that answers the following questions and that meets the list of requirements that follows.
Each of the problems you will be solving requires using your calculator to solve a financial equation. In order to calculate answers correctly, it is important that you follow several rules:
1. Follow the Order of Operations to solve complicated problems.
2. Attempt to solve equations without writing down intermediate values. If you must write down values, keep as many digits or decimal places as you can. Better yet, use the memory locations in your calculator to store intermediate values.
3. NEVER round intermediate calculations. Only round the final answer.
Several excellent videos that describe how to solve algebraic expressions using the Order of Operations Rules are available at mathispower4u.yolasite.com. After reaching the Mathispower4u site, click on the Algebra 1 Video Library link and find the Order of Operations section in the first column. The first 12 short videos will give you an excellent overview. The next 12 may also be helpful.
Answer the following Questions and please show how you got your answer:
1. Terry deposits $3500 into an account paying 10% annual interest compounded monthly in hopes of having at least $7000 in eight years to take his dream vacation to China.
A). How much money will Terry have in eight years? B). Will he be able to take his trip? (Please show work)
2. What is the total cost of a $525 iPad that is on sale for 15% off, if the local sales tax rate is 7% (please show work))?
Explanation / Answer
1.
(A) Formula for compound interst:
A = P(1 + r/n)nt, (1)
where
A = future value of the invesment, including interest
P = Principal investment amount
r = Annual rate of interest
n = Number of times that interest is compounded per year
t = Number of years.
Here,
A = To be calculated
P = 3500
r = 0.10
n = 12
t = 8
Substituting in (1), we get:
A = 3500 (1 + 0.10/12)12X8 = 2.2182X3500 = 7763.70
(B) Since amount Terry got is 7763.70, which is more than 7000, he will be able to take his trip.
2. Marked Price = 525
Discount = 15 %
= 525 X 15/100 = 78.75
Price after discount = 446.25
Sales tax = 7 %
= 446.25 X 7/100 = 31.24
So, Total cost = 446.25 + 31.24 = 477.49