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

Step 1:
Find total cost of new computer

Step 2:
Find total cost of refurbished computer

Step 3:
Find the difference in costs.

Step 4:
Find interest earned after 1 year (I=p*r*t)

Step 5:
Find total on the bank account after 1 year.

Answer 2

I dont know how to put the Percentages into the answer like the taxes and discounts. I dont understand how to figure it out

Answer 3

A 10% savings means it's 90% the original price, or (as a decimal) .90 times the original price.

A 6.5% tax means it's 106.5% of the price, or (as a decimal) 1.065 times the price.

Answer 4

Also, it doesn't matter which order you multiply the tax and the savings in (you can do either first.)

Answer 5

1360 * .9 * 1.065 = 1303.56

1095 * 1.0575 = 1157.96

you save
1303.56 - 1157.96 = 145.60

A = P(1 + rt)
A = 145.6 * 1.0375
A = $151.06

Answer 6

Ok, Im seeing how you got it. Im still kinda confused.

Answer 7

I SEE NOW!

Answer 8

Where did you get the 1.0375

Answer 9

That's the 3.75% interest.