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Chapter+10+quiz+with+answers - Math 103 2011 Chapter 10...

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Math 103 Chapter 10 Quiz-Solutions April 1, 2011 Problems 1-4 are 5 points each. 1. In September, the Goodprices store was selling an astronomy book for 20% over cost (20% increase). In October the book went on sale for 20% off. In November the book price was reduced by 8.5%. a. After the increase and decreases, was there a percentage profit or loss to the store? 20% increase means multiply by 1+.20=1.20 20% decrease means multiply by 1-.20=0.80 8.5% decrease means multiply by 1-.085=.915 1.20*0.80*0.915=0.878 Since 0.878 is less than 1, there is a percentage loss. It is 1-0.878=0.122 or a 12.2% decrease Note that 1-.122=.878 That is, if the original price is P, then the new price is P- 0.122P=0.878P, A 12.2% decrease in the price. b. What is the percentage profit or loss? 12.2% loss c. If the original price of the book was $150, what is the final price of the book? 0.878*$150=$131.70 2. Formula for simple interest is F=P(1+rt). You deposit $5400 in the bank where it earns simple interest for 8 years.
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At the end of that time, you have $8316. Determine the APR for your deposit F=P(1+rt) F=8316 P=5400 t=8 8316=5400(1+8r) 8316/5400=1+8r 1.54=1+8r .54=8r R=.54/8=.0675 =6.75%
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