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Question 275923: Hi, I am in 7th grade Pre-Algebra and I cannot figure out this word problem.
Can come one help me??
Two companies are working on a system that uses satellites to help dispence the correct amount of fertilizer on crops. The basic equipment costs $7000. Annual fees for signal reception will be about $1200.
a) How much additional revenue would the technology have to generate for a farmer in ten years for the investment to have been a good one?
b) One farm expert estimated that the system would produce an additional $100 per acre each year on a certain crop. How large a farm should the farmer have in order to expect to make money over a five-year period using the system?
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! Two companies are working on a system that uses satellites to help dispence the correct amount of fertilizer on crops. The basic equipment costs $7000. Annual fees for signal reception will be about $1200.
:
a) How much additional revenue would the technology have to generate for a farmer in ten years for the investment to have been a good one?
It's adding up the initial cost, then 10 yrs of a $1200 fee
R > 10(1200) + 7000
R > $19000 additional revenue required to start paying dividends
:
b) One farm expert estimated that the system would produce an additional $100 per acre each year on a certain crop. How large a farm should the farmer have in order to expect to make money over a five-year period using the system?
:
Let x = no. of acres needed to make money
:
100x > 5(1200) + 7000
100x > 6000 + 7000
100x > 13000
x > 13000/100
x > 130 acres, (more than 130 acres to make money it)
:
:
The above assumes that he has to pay the 7000 for the equipment in that 5 yr period, after that he just has the 1200 annual fee then
100x > 1200
x > 1200/100
x > 12 acres would make money for him each year
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