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Section 6.5

Chapter 6. Section 6.5. Exercise #1. Solve the following application. What interest will you pay on a $3400 loan for 1 year if the interest rate is 12% ?. Rate = 12%. Base = $3400. The interest that you will pay is the amount. Amount is the interest you will pay. Base = $3400.

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Section 6.5

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  1. Chapter 6 Section 6.5 Exercise #1

  2. Solve the following application. What interest will you pay on a $3400 loan for 1 year if the interest rate is 12%? Rate = 12% Base = $3400 The interest that you will pay is the amount.

  3. Amount is the interest you will pay Base = $3400 Rate =12% = Amount R = Base 100 = 40,800 100 100 = 408 100A A The interest that you will pay is $408.

  4. Chapter 6 Section 6.5 Exercise #7

  5. Solve the following application. Joan was charged $18 interest for 1 month on a $1200 credit card balance. What was the monthly rate? Amount = $18 Base = $1200 We must find the rate.

  6. We must find the rate. Amount = $18 Base =$1200 = Amount R = Base 100 = 1800 1200 1200 R = 1.5 = = 1200R The monthly interest rate is 1.5%.

  7. Chapter 6 Section 6.5 Exercise #13

  8. Solve the following application. A state sales tax is levied at a rate of 6.4%. How much tax would one pay on a purchase of $260? Rate = 6.4% Base = $260 The amount is the tax to be paid.

  9. The amount is the tax to be paid. Base = $260 Rate =6.4% = Amount R = Base 100 = 1664 100 100 = 16.64 100A A The tax that one must pay is $16.64.

  10. Chapter 6 Section 6.5 Exercise #17

  11. Solve the following application. A study has shown that 102 of the 1200 people in the workforce of a small town are unemployed. What is the town’s unemployment rate? Amount = 102 Base = 1200 We must find the rate.

  12. We must find the rate. Amount = 102 Base =1200 = Amount R = Base 100 = 10,200 1200 1200 = 8.5 = = = 1200R R The town’s unemployment rate is 8.5%.

  13. Chapter 6 Section 6.5 Exercise #23

  14. Solve the following application. 22% of Samuel’s monthly salary is deducted for withholding. If those deductions total $209, what is his salary? Rate = 22% Amount = $209 Base = Samuel’s monthly salary

  15. Base = Samuel’s monthly salary Rate = 22% Amount =$209 = Amount R = Base 100 = 20,900 22 22 = 950 22B B Samuel’s monthly salary is $950.

  16. Chapter 6 Section 6.5 Exercise #27

  17. The amount is the increase in the lot’s value. Solve the following application. A home lot purchased for $26,000 increased in value by 25% over 3 years. What was the lot’s value at the end of the period? Base = $26,000 Rate = 25%

  18. The amount is the increase in the lot’s value. Base = $26,000 Rate =25% Amount R = = Base 100 100 100 = 650,000 = 6500 100A A

  19. The amount is the increase in the lot’s value. Base = $26,000 Rate =25% $6500 is the amount of the increase in the lot’s value. The lot’s value at the end of the 3-year period is: $26,000 + $6500 = $32,500

  20. Chapter 6 Section 6.5 Exercise #33

  21. Solve the following application. The price of a new van has increased $2030, which amounts to a 14% increase. What was the price of the van before the increase? Amount = $2030 Rate = 14% Base = the price of the van beforethe increase

  22. Rate = 14% Base = the price of the van before the increase Amount =$2030 = Amount R = Base 100 = 203,000 14 14 = 14,500 14B B The price of the van before the increase was $14,500.

  23. Chapter 6 Section 6.5 Exercise #45

  24. What does the rate equal? Solve the following application. A pair of shorts is advertised for $48.75 and as being 25% off the original price. What was the original price? Base = the original price Amount = $48.75 Rate ≠ 25%

  25. A pair of shorts is advertised for $48.75 and as being 25% off the original price. What was the original price? Base = the original price Amount = $48.75 $48.75 is 75% of the original price. Solve the following application. Rate = 75%

  26. Base = the original price Rate =75% Amount = $48.75 = Amount R = Base 100 = 4875 75 75 = 65 75B B The original price was $65.

  27. Chapter 6 Section 6.5 Exercise #51

  28. Assume that the interest is compounded annually (at the end of each year), and find the amount in an account with the given interest rate and principal. $4000, 6%, 2 years

  29. Interest = Principal x Rate (I = P x R) = $4240 $4000, 6%, 2 years Interest at the end of year 1: R =.06 P = $4000 = $240 I = 4000 x .06 At the end of year 1, the interest earned is $240. The amount of money in the account at the end of year 1 is: $4000 + $240

  30. Interest = Principal x Rate (I = P x R) $4000, 6%, 2 years Interest at the end of year 2: R =.06 P = $4240 = $254.40 I = 4240 x .06 At the end of year 2, the interest earned is $254.40. The amount of money in the account at the end of year 2 is: $4240 + $254.40 = $4494.40

  31. Chapter 6 Section 6.5 Exercise #57

  32. In 1989, transportation accounted for 63% of U.S. petroleum consumption. If 10.85 million bbl of petroleum is used each day for transportation in the United States, what is the total daily petroleum consumption by all sources in the United States? Amount = 10.85 million Rate = 63% Base = total daily petroleum consumption by all sources in the U.S.

  33. Base = total daily petroleum consumption by all sources in the U.S. Rate =63% Amount = $10.85 million Amount R = = Base 100 = 1085 63 63 = 17.22 63B B 17.22 million bbl are consumed daily by all sources in the U.S.

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