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OLEGan [10]
3 years ago
12

Cordell Johnson purchased a snow blower for $237.00 and two bags of rock salt for $3.15 each. What is the sales tax on his purch

ases if he lives in Maine where the sales tax rate is 5%?
Mathematics
2 answers:
zepelin [54]3 years ago
7 0

The tax rate in Maine is 5%, so add the number together and multiply the number by 0.05.  The answer I got is 12.165

Aloiza [94]3 years ago
6 0

Answer:

$12.165 or rounded to the nearest cent $12.17.

Step-by-step explanation:

Cordell Johnson purchased a snow blower for $237.00 and two bags of rock salt for $3.15 each. His total purchase is

$237.00+$3.15+$3.15=$243.30.

If the sales tax rate is 5%, then the sales tax on his purchases is

\$243.30\cdot 0.05=\$12.165\approx \$12.17.

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Part B) \$12,134.08

Part C) The simple interest investment is better than the compounded  interest investment at the end of three years.

Part D)  see the explanation

Step-by-step explanation:

Part A) Determine the value of the simple-interest investment at the end of three years

we know that

The simple interest formula is equal to

A=P(1+rt)

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A is the Final Investment Value

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in this problem we have

t=3\ years\\ P=\$10,000\\r=7.4\%=7.4/100=0.074

substitute in the formula above

A=10,000(1+0.074*3)

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Part B) Determine the value of the compound-interest investment at the end of three years

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The compound interest formula is equal to  

A=P(1+\frac{r}{n})^{nt}  

where  

A is the Final Investment Value  

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t is Number of Time Periods  

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in this problem we have  

t=3\ years\\ P=\$10,000\\r=6.5\%=6.5/100=0.065\\n=4

substitute in the formula above

A=10,000(1+\frac{0.065}{4})^{4*3}  

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A=\$12,134.08

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The compounded  interest investment is less than the simple interest investment

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Part D) How would you advise George to invest his money if he is unsure how long he’ll keep the money in the account?

we have

A=10,000(1+0.074t)  ----> simple interest formula as a function of the time t

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Look to the attached graph below

The red line represents the simple interest investment

The blue curve represents the compounded interest investment

After 0 years and before 4.179 years the red line is over the blue curve, that means the simple interest is better because it gives more money than the compounded interest

After that the blue curve is over the red line that means the compounded quarterly is better because it gives more money than the simple interest

therefore

I advise George to invest his money in the compounded interest investment if he will keep the money for a long time

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