Question

Can someone help me answer a math question? I need to figure how to work this out

39. You are debating whether to buy a new computer for $1,360.00 with a discount of 10% and sales tax of 6.5% or a refurbished computer with the same equipment for $1,095.00 and sales tax of 5.75%. If a savings account earns a 3.75% APR, how much do you really save with a refurbished computer if you put the difference into the savings account for a year and calculate using the simple interest formula?

Answer 1

Tabulate the options:
New: $1,360 - 136 dis. + 6.5% sale tax = $1, 303.56
Refurbished: $1,095 + 5.75 sale tax = $ 1, 157.96
Then,
Use the difference as principal in Simple Interest formula!

Answer 2

AH! thank you so much :D

Answer 3

Pleasure is mine =)

Answer 4

so after i do these steps i add them together to find the principal? and then i should add that to the 3.75%APR?

Answer 5

"put the DIFFERENCE into the savings account for a year and CALCULATE USING SIMPLE INTEREST formula? "

Answer 6

I=P r t?

Answer 7

Yes, memorize it!

Answer 8

And the most important is to APPLY it!

Answer 9

So true :) thanks yous :D