Question

Determine the following estimate without using a calculator. Then use a calculator to perform the computation necessary to obtain an exact answer. How reasonable is your estimate when compared to the actual​ answer?

You lease a car at ​$403 per month for 5 years. Estimate the total cost of the lease by rounding the monthly payment to the nearest hundred.

and what is the actual total cost of the lease

Answer 1

The estimate cost of the lease is $24,000 and the actual cost of the lease is $24,180

Explanation:

step 1

Estimate the total cost of the lease

Remember that

1 year=12 months

Rounding the monthly payment to the nearest hundred.

`\$403=\$400`

The total cost of the lease is equal to multiply the monthly payment by the number of months

The number of months is

`5(12)=60\ months`

therefore

`\\$400(60)=\$24,000`

step 2

Find the actual cost of the lease

`\\$403(60)=\$24,180`

The estimate, when compared to the actual answer, is very comparable because the estimate is only $180 less than the actual amount.