60 Chapter 1 Linear Equations and Inequalities in One Variable Answer 3. $8500 and t. Solving a Percent Application 14 A woman invests $5000 in an account that earns % simple interest. If the money is invested for 3 years (yr), how much money is in the account at the end of the 3-yr period? Solution: Let x represent the total money in the account. Label the variables. P $5000 (principal amount invested) r 0.0525 (interest rate) t 3 (time in years) The total amount of money includes principal plus interest. (Total money) (principal) (interest) Verbal model x P Prt Mathematical equation x $5000 ($5000)(0.0525)(3) Substitute for P, r, x $5000 $787.50 x $5787.50 Solve for x. The total amount of money in the account is $5787.50. Interpret the results. Skill Practice 3. Markos earned $340 in 1 yr on an investment that paid a 4% dividend. Find the amount of money invested. 5 Example 3 TIP: Remember to use the decimal form of a percent when the number is used in a calculation. As consumers, we often encounter situations in which merchandise has been marked up or marked down from its original cost. It is important to note that percent increase and percent decrease are based on the original cost. For example, suppose a microwave oven originally priced at $305 is marked down 20%. The discount is determined by 20% of the original price: (0.20)($305) $61.00. The new price is $305.00 $61.00 $244.00. Solving a Percent Increase Application Example 4 A college bookstore uses a standard markup of 40% on all books purchased wholesale from the publisher. If the bookstore sells a calculus book for $179.20, what was the original wholesale cost?
miller_intermediate_algebra_4e_ch1_3
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