Question

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?
Be sure to include in your response:
• the answer to the original question
the mathematical steps for solving the problem demonstrating mathematical
reasoning

1. Question:
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?
= $1,360 – 10% of$ 1,360+ 6.5% ($1,360-10% of$1,360)
= $1, 303.56 Refurbished: Selling price +sale tax =$1,095 + 5.75 % of $1,095 =$ 1, 157.96
= $1, 157.96 –$1, 303.56
=$145.60 And Interest =$145.60*3.75% = $5.46 Now Your total savings buying the refurbished computer would be =The difference in prize + interest$145.60 +$5.46 =$151.06