Section 1.2 Operations with Real Numbers and Algebraic Expressions 25 Applications Example 6 will illustrate how we can use operations with real numbers and algebraic expressions to solve real-world applications. Objective 6 ▶ Solve applications involving operations on real numbers and algebraic expressions. Objective 6 Examples Solve each problem. 6a. A person’s net worth is calculated by subtracting total assets and total liabilities. If the Dobson family has $250,000 in assets and $285,000 in total liabilities, find their net worth. Solution 6a. Net worth = total assets − total liabilities = 250,000 − 285,000 = 250,000 + (−285,000) = −35,000 The Dobson family has a net worth of −$35,000. 6b. The following chart shows the closing stock price for Walmart for a week in June 2011. (Source: http://investors.walmartstores.com/phoenix.zhtml?c=112761& p=irol-stocklookup) Date Closing Price Daily Change in Price 6/20/2011 $53.04 n/a 6/21/2011 $53.29 6/22/2011 $53.01 6/23/2011 $53.29 6/24/2011 $52.41 i. Complete the chart to show how the price of the stock changed from the previous day to the next. ii. After completing the chart, find the average daily change in price. Solution 6b. i. The change in price is found by subtracting the previous day’s price from the next day’s price. Date Closing Price Daily Change in Price 6/20/2011 $53.04 n/a 6/21/2011 $53.29 53.29 - 53.04 = 0.25 6/22/2011 $53.01 53.01 - 53.29 = -0.28 6/23/2011 $53.29 53.29 - 53.01 = 0.28 6/24/2011 $52.41 52.41 - 53.29 = -0.88 ii. To find the average daily change in price, we add the daily changes and divide by the number of changes. 0.25 + (-0.28) + (0.28) + (-0.88) 4 = -0.63 4 =-0.1575 So, the price of Walmart stock from June 20 to June 24 decreased by an average of $0.1575 per day or 15.75 cents per day.
hendricks_intermediate_algebra_1e_ch1_3
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