Question

Mikaela wants to use her savings to buy a surfboard that costs $329. She has a coupon for 25% off and the sales tax is 7.5%. She deposited $245 in her bank account 3 years ago at a simple interest rate of 3.5% per year. Does she have enough money in her account to pay for the surfboard? Explain your answer.

Answer 1

• Yes

Explanation:

Mikaela needs to pay for a surfboard:

• 329*(1 - 0.25)*(1+ 0.075) =
• $265.26

Mikaela will have money in account:

• 245*(1 + 3*0.035) =
• $270.73

As she has more money than needed she can buy the surfboard