Problem of the Month November/December 2017

Slick McNally is trying to sell you a 2016 Saturn for $15,000.

He is offering you a 2 year loan with no interest and no down payment.

a.  How much will your monthly payments be?

b.  Suppose you make a down payment of $2,000,  how does this affect your monthly payment?

Problem of the Month

A hair dresser's salary in her first year is $30,000.

Each year she earns a 2% raise.

How much will she earn in her 6th year?

e = earnings      n = number of years

e = 30,000[1.02^(n-1)]

e = 30,000[1.02^(6-1)]

e = 30,000[1.02⁵]

e = 30,000[1.104]

e = $33,122.42