Answer:
$1,061.76
Step-by-step explanation:
(refer to attached handout)
For compound interest, you are given:
A = ? (need to find)
P = $1000
r = 3% = 0.03
n = compounded monthly = 12 times per year
t = 2 years
(substituting this into the formula)
A = P [ 1 + (r/n) ] ^(nt)
A = 1000 [ 1 + (0.03/12) ] ^[(12)(2)]
A = 1000 [ 1 + 0.0025 ] ^24
A = 1000 [ 1.0025 ] ^24
A = 1,061.76
The store must sell 60 of each set each to obtain the biggest possible income
<h3>How to determine the number of each gift set?</h3>The given parameters can be represented using the following table:
<u>Set 1 Set 2 Available</u>
Notebook 2 3 300
Pen 1 1 120
Selling price 8 11.5
Using the above data values, we have:
Objective function: Max P = 8x + 11.5y
Subject to:
2x + 3y ≤ 300
x + y ≤ 120
Next, we plot the graph of the above inequalities (see attachment)
From the attached graph, we have:
(x,y) = (60,60)
Hence, the store must sell 60 of each set each to obtain the biggest possible income
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