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Notice that in this example, Loren’s brother paid Loren interest, just like a bank would have paid interest if Loren invested his money there.
Jim loaned his sister $5,000 to help her buy a house. In 3 years, she paid him the $5,000, plus $900 interest. What was the rate of interest?
6%
Hang borrowed $7,500 from her parents to pay her tuition. In 5 years, she paid them $1,500 interest in addition to the $7,500 she borrowed. What was the rate of interest?
4%
Eduardo noticed that his new car loan papers stated that with a 7.5% interest rate, he would pay $6,596.25 in interest over 5 years. How much did he borrow to pay for his car?
Sean’s new car loan statement said he would pay $4,866.25 in interest from an interest rate of 8.5% over 5 years. How much did he borrow to buy his new car?
$11,450
In 5 years, Gloria’s bank account earned $2,400 interest at 5%. How much had she deposited in the account?
$9,600
Applications of discount are very common in retail settings. When you buy an item on sale, the original price has been discounted by some dollar amount. The discount rate , usually given as a percent, is used to determine the amount of the discount. To determine the amount of discount , we multiply the discount rate by the original price.
We summarize the discount model in the box below.
Keep in mind that the sale price should always be less than the original price.
Elise bought a dress that was discounted 35% off of the original price of $140. What was ⓐ the amount of discount and ⓑ the sale price of the dress?
ⓐ
ⓑ
Read the problem again.
Step 1. Identify what we are looking for. | the sale price of the dress | |
Step 2. Name what we are looking for. | ||
Choose a variable to represent that quantity. | Let the sale price. | |
Step 3. Translate into an equation. | ||
Write a sentence that gives the information to find it. | ||
Translate into an equation. | ||
Step 4. Solve the equation. | ||
Step 5. Check. Does this make sense? | ||
Is the sale price less than the original price? | ||
Yes, $91 is less than $140. | ||
Step 6. Answer the question with a complete sentence. | The sale price of the dress was $91. |
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