The table containing the data needed for this problem is attached on this answer. This data is used to determine the best fit line that is extracted from this multitude of points given. Best fit line is described as a line in which the variation of each point to the line is the minimum. We plot the data using MS Excel and is shown in the figure attached as well. We determine the trendline of the graph by the function in MS Excel. The equation of the trendline is expressed as <span>y = -26.059x + 722.63 in which the coefficient of determination, r^2 = 0.8947. </span>
First, we can subtract the discount from the original price. Divide the discount (42%) over 100.
42/100 = 0.42
Next, we need to multiply. It's basically asking what 42% of 20 is.
0.42 × $20 = $8.40
Now, we know that we will have $8.40 on the CD because of the discount. We can subtract the saved amount from the original amount to get the price.
$20 - $8.40 = $11.60
You will pay $11.60 for the CD without taxes.
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Now to add the taxes.... To do this, do the same first step we did when finding the discount price.
6/100 = 0.06
Multiply. Like I said, you can think of it as, '6% of 11.60'.
0.06 × 11.60 = $0.70
Last step is to ADD. Since taxes add more money onto the current price, we will have to add.
$11.60 + $0.70 = $12.30
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The total price of the CD will be: $12.30.
The answer is B. If there ever a question similar to this, just put the equation in graphs calculator and see what the graph look like. I hope this is helpful.
