Questions on Word Problems: Money, Business and Interest answered by real tutors!

Tutors Answer Your Questions about Money Word Problems (FREE)

Question 1207775: Therese, an outside salesperson, uses her car for both business and pleasure. Last year, she traveled 30,000 miles, using 900 gallons of gasoline. Her car gets 40 miles per gallon on the highway and 25 in the city. She can deduct all highway travel,but no city travel, on her taxes. How many miles should Therese be allowed as a business expense?

Click here to see answer by ikleyn(52775)

Question 1207785: Steve, a recent retiree, requires $5000 per year in extra income. He has $70,000 to invest and can invest in A-rated bonds paying 8% per year or in a certificate of deposit (CD) paying 5% per year. How much money should be invested in each to realize exactly $5000 in interest per year?

Here is my system of equations:

x + y = 70,000
0.08x + 0.05y = 5,000

Note:
Let x = A-rated bonds
Let y = CD

Is my set up correct?

Click here to see answer by ikleyn(52775)

Question 1207784: You are the manager of a clothing store and have just purchased 100 dress shirts for $20.00 each. After 1 month of selling the shirts at the regular price, you plan to have a sale giving 40% off the original selling price. However,you still want to make a profit of $4 on each shirt at the sale price.What should you price the shirts at initially to ensure this? If, instead of 40% off at the sale, you give 50% off, by how much is your profit reduced?
Click here to see answer by math_tutor2020(3816)

Question 1207853: Dan receives $375 per week for selling new and used cars at a car dealership in Oak Lawn, Illinois. In addition, he receives 5% of the profit on any sales that he generates. Write a linear equation that represents Dan’s weekly salary S when he has sales that generate a profit of x dollars.
Click here to see answer by mananth(16946)

Question 1207852: The fixed costs of operating a business are the costs incurred regardless of the level of production. Fixed costs include rent, fixed salaries, and costs of leasing machinery.The variable costs of operating a business are the costs that change with the level of output. Variable costs include raw materials, hourly wages,and electricity. Suppose that a manufacturer of jeans has fixed daily costs of $500 and variable costs of $8 for each pair of jeans manufactured. Write a linear equation that relates the daily cost C, in dollars, of manufacturing the jeans to the number x of jeans manufactured. What is the cost of manufacturing 400 pairs of jeans? 740 pairs?
Click here to see answer by ikleyn(52775)

Question 1207881: Commonwealth Edison Company supplies electricity to residential customers for a monthly customer charge of $10.55 plus 9.44 cents per kilowatt-hour for up to 600 kilowatt-hours.
(a) Write a linear equation that relates the monthly charge C,in dollars, to the number x of kilowatt-hours used in a month, 0 <= x <= 600.
My equation is C(x) = 9.44x + 10.55, where x = the number of kilowatt-hours. However, the book's equation is C(x) = 0.0944x + 10.55.
Tell me, where did 0.0944 come from in the book's equation?
(b) Graph this equation.
I don't know how to upload pictures on this website.
(c) What is the monthly charge for using 200 kilowatt-hours?
For (c), I must let x = 200 in the equation. Yes?
(d) What is the monthly cost for using 500 kilowatt-hours?
For (d), I must let x = 500 in the equation. Yes?
(e) What is the monthly charge for using 700 kilowatt-hours?
I see that 700 falls outside the given range [0, 600].
So, it cannot be determined. Yes?
(f) Interpret the slope of the line.
Let x = number of kilowatt-hours
So, each x used adds $0.0944 to the bill.
You say?
Click here to see answer by ikleyn(52775)

Question 1207886: A cereal company finds that the number of people who will buy one of its products in the first month that it is introduced is linearly related to the amount of money it spends on advertising.If it spends $40,000 on advertising, then 100,000 boxes of cereal will be sold,and if it spends $60,000,then 200,000 boxes will be sold.
(a)Write a linear equation that relates the amount Aspent on advertising to the number x of boxes the company aims to sell.
I must find a linear equation in the form f(x) = mx + b. I can do this by using the points (40,000, 100,000) and (60,000, 200,000) to find the slope. After finding the slope, I think use the point-slope formula to find my linear equation.
You say?
(b) How much advertising is needed to sell 300,000 boxes of cereal?
Once I find the linear equation, I can then evaluate at x = 300,000.
You say?
(c) Interpret the slope.
Let x = number of boxes
Each additional x sold needs an additional amount in advertising.
You say?

Click here to see answer by math_tutor2020(3816)

Question 1208005: The cost C of roasted almonds varies directly with the number A of pounds of almonds purchased. If the cost is $23.75 when the number of pounds of roasted almonds purchased is 5,find a linear equation that relates the cost C to the number A of pounds of almonds purchased. Then find the cost C when the number of pounds of almonds purchased is 3.5.
Click here to see answer by josgarithmetic(39616)

Question 1208045: Mr B invested p30000:part at 5% and part at 8%.The total interest on the investment was p2100. How much did she invest at each rate.
Click here to see answer by ikleyn(52775)

Question 1136230: Questions 2 and 3 are based on the following situation:
On 5 April Sam invested R75 000 in an account paying 8,37% interest per year, compounded monthly. Interest
is credited on the 1st of every month. Sam wants to open a second-hand cellphone shop in the new Talk-and-
Listen complex. He will move into his new premises on 21 November of the same year.
Question 2
If simple interest is used for odd period calculations and compound interest for the full term, then the amount
of money that Sam will have available in the account on 21 November is
[1] R78 195,04.
[2] R78 955,68.
[3] R79 002,95.
[4] R79 018,82.
[5] R79 020,96.
Question 3
If fractional compounding is used for the full term then Sam will receive
[1] R78 439,73.
[2] R78 896,69.
[3] R79 020,29.
[4] R79 027,82.
[5] R79 047,39.
Click here to see answer by Tumie(1)

Question 1208209: You can afford a $900 per month mortgage payment. You've found a 30 year loan at 7.7% interest.

a) How big of a loan can you afford? (Round to the nearest cent, as needed.)
b) How much total money will you pay the loan company? (Round to the nearest cent, as needed.)
c) How much of that money is interest? (Round to the nearest cent, as needed.)
Click here to see answer by ikleyn(52775)

Question 1208307: Suppose you have $1350 in your savings account at the end of a certain period of time. You invested $1200 at a 2.22% simple annual interest rate. How long, in years, was your money invested?
Click here to see answer by math_tutor2020(3816)

Question 1208366: According to the IRS, a single taxpayer with a taxable income between $85,650 and $178,650 in 2012 paid $17,442, plus 28% of the amount over 85,650. If Lorinda paid 22,549 in federal income tax for 2012, then what was his taxable income in 2012
Click here to see answer by math_tutor2020(3816)

Question 1208613: Tickets to a local movie were sold for $6.00 for adults and $4.50 for students. If 276 tickets were sold for a total of $1632.00, how many student tickets were sold?
Click here to see answer by math_tutor2020(3816)

Question 1208633: Larger wants to take a trip in 8 years. She needs 2,400$. How much should she deposit into an account that pay 3.5% interest daily to meet her goal, round to nearest dollar

Click here to see answer by ikleyn(52775)

Question 1208775: Use the savings plan formula to answer the following question.
Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 7 %. How much should you deposit monthly to accumulate $89,000 in 13 years?
Question content area bottom
Part 1
You should invest $

(Do not round until the final answer. Then round to two decimal places as needed.)
Click here to see answer by ikleyn(52775)

Question 1208865: A television set that originally cost $1955 was reduced in price by successive discounts of 5%, 8% and 24%. What was the equivalent single rate of discount?

Click here to see answer by ikleyn(52775)

Question 1208899: Andrew and Beatrice each have their own savings account. Beatrice’s account has $600 less than three times what Andrew’s account has. If Andrew had $300 more dollars, then he would have exactly half what is currently in Beatrice’s account. How much does Beatrice have?
Click here to see answer by timofer(104)

Question 1208925: The price of a pair of sneakers was $100 for the last 10 months of last year. On
January first, the price increased 30%. After the price increase, an employee
bought these sneakers with a 10% employee discount. What price did the employee
pay?

Click here to see answer by mccravyedwin(406)

Question 1208921: The price of a pair of sneakers was $80 for the last six months of last year. On January first, the price increased 20%. After the price increase, an employee bought these sneakers with a 10% employee discount. What price did the employee pay?

Click here to see answer by josgarithmetic(39616)

Question 1208975: Supreme Auto Service opened a new service center three decades ago. At the time the center was preparing to open, new equipment was purchased totaling $355,000. Residual value of the equipment was estimated to be $45,000 after 20 years. The company accountant has been using straight-line depreciation on the equipment.
(a)
How much was the annual depreciation for the original equipment (in $)?
$
8,000

Incorrect: Your answer is incorrect.
(b)
If the hydraulic lift had originally cost $14,200, what would its residual value (in $) be after 20 years?
$
1800

Correct: Your answer is correct.
(c)
After six years of operation, the original hydraulic lift was replaced with a new model that cost $21,000. Book value was allowed for the old machine as a trade-in. What was the old hydraulic lift's book value when the replacement machine was bought (in $)?
$
8,000

Incorrect: Your answer is incorrect.
(d)
What was the book value of the equipment inventory at the six-year point, substituting the new hydraulic lift for the original after the new lift had joined the inventory (in $)?
$
Click here to see answer by ikleyn(52775)

Question 1209129: If the prize pool is $2000 and I’m in 856th place out of 3,000 people, how much would I receive from the prize pool?
Click here to see answer by ikleyn(52775)

Question 1201558: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days for a payment to be received and recorded and that the month is 30 days long. (Round your answer to the nearest cent.)
Balance: $300
Rate: 17%
Payment: $50
Method: Adjusted balance

Click here to see answer by asinus(45)

Question 1198979: Alec inherited ₱1,000,000 from his grandparents. He planned
to invest it for his future. He was offered a 45% ownership and the other
one is 6.5% bond of the fast food chain that will be built on their local area. Help Alec decide by illustrating to him the two options with the different
successful rate
Click here to see answer by CPhill(1959)

Question 1198640: Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 31) in an account that earns 8%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 8% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)? (Round your answer to the nearest cent.)
Click here to see answer by CPhill(1959)

Question 1198377: Assume that your widget manufacturing company has a total annual demand of N widgets per year evenly distributed across the year. Each widget cost $b dollars in material and manufacturing costs to make. Every time you do a production run to make some widgets, you incur a set-up cost of P dollars. Any widgets awaiting sale must be stored and thus incur an average storage fee of c dollars per widget per year. Let x be the size of each production run (i.e. x is the number of widgets per production run).
Write a cost function C(x) and explain each term in the equation and how it was determined.
Write down any constraints on the allowable values of x.
Determine a formula for the value of x that minimizes total annual cost. Show all of your work.
Prove that your formula actually corresponds to the global minimum cost.
Write down a formula for the number of production runs per year as a function of x.
Click here to see answer by CPhill(1959)

Question 1198671: Suppose a state lottery prize of $3 million is to be paid in 25 payments of $120,000 each at the end of each of the next 25 years. If money is worth 11%, compounded annually, what is the present value of the prize? (Round your answer to the nearest cent.)

Click here to see answer by ikleyn(52775)

Question 1197800: Hello, my problem is: Suppose you are the accountant for a certain pharmaceutical company. In January 2000, the company purchased the patent rights for a new medication from Novae, Inc., for $12,000,000. The patent had 15 years remaining as its useful life. In January 2005, your pharmaceutical company successfully defended its right to the patent in a lawsuit that cost $690,000 in legal fees.
Using the straight-line method, calculate the patent's annual amortization expense (in $) for the years before the lawsuit.
Click here to see answer by ElectricPavlov(122)

Question 1196641: THE LINK FOR THE CONTINGENCY TABLE : https://imagizer.imageshack.com/img922/7664/ifwzWf.jpg
A department store is developing a new advertising campaign for their new location in a different region, and their marketing managers need to understand their target market better. A survey of adult shoppers found the probabilities that an adult would shop at their new store classified by age is shown in the contingency table. Are age and shopping at the department store independent? Explain.
Click here to see answer by ElectricPavlov(122)

Question 1194125: John wants to buy a car on hire purchase for N$75,000.00 at the rate of 10% p.a. repayable using monthly installments for a period of 2 years and 8 months. (No deposit was required). Use the given information to calculate the:
Total amount of money expected to be paid to the Hire Purchase Company over the years.
Click here to see answer by parmen(42)

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