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

Answers

  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?
    Answer:
    Tabulate the options:
    New computer prize: Marked price -discount price+ Tax
    = $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
    Then,
    The difference in price =Refurbished -New computer prize
    = $ 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
    We save $151.06 with a refurbished computer

    Reply

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