Question

Hakim invests $700 in a bank that pays 5% simple interest annually. After one year he uses the money in his account to buy a computer. The original cost of the computer is $750.00. The computer is on sale for a 20% discount off of the original cost. The sales tax is 4% of the sale price. After purchasing the computer, how much does Hakim have left in his bank account? Show your work.

Answer 1

To answer this question you will need to calculate the amount of interest he earns in a year, apply the discount on the sale price, and calculate the sales tax on the discounted price. Then you will take the amount in his bank account minus the sale price with tax.

Each of the steps is shown in the attached work.

He will have $111 left is his account.