Homework: 7.1 hw
1 answer:
Answer:
a. $ 2,431.01 = 4 years
b. $ 4,584.04 = 17 years
c. 4.57 years = $ 2,499.57
d. 8.3 year = $ 2,998.48
e. $ 2,431.01 = 4 years
Step-by-step explanation:
Compound Interest Equation
A = P(1 + r/n)nt
Where:
A = Accrued Amount (principal + interest)
P = Principal Amount
I = Interest Amount
R = Annual Nominal Interest Rate in percent
r = Annual Nominal Interest Rate as a decimal
r = R/100
t = Time Involved in years, 0.5 years is calculated as 6 months, etc.
n = number of compounding periods per unit t; at the END of each period
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You must drive more than 40 miles to make option A the cheaper plan
<em><u>Solution:</u></em>
Two payment options to rent a car
Let "x" be the number of miles driven in one day
<em><u>You can pay $20 a day plus 25¢ a mile (Option A)</u></em>
25 cents is equal to 0.25 dollars
OPTION A : 20 + 0.25x
<em><u>You pay $10 a day plus 50¢ a mile (Option B)</u></em>
50 cents equal to 0.50 dollars
Option B: 10 + 0.50x
<em><u>For what amount of daily miles will option A be the cheaper plan ?</u></em>
For option A to be cheaper, Option A must be less than option B
Option A < Option B
Solve the inequality
Add -0.50x on both sides
Add - 20 on both sides,
Divide both sides by 0.25
Thus you must drive more than 40 miles to make option A the cheaper plan