Question

Barry's Bagel Emporium sells a dozen bagels for $5.00. This price is no longer high enough to create a profit. The owner

decides to raise the price. He does not want to alarm his customers with too large of an increase. He is considering four
different plans
Plan A: Raise the price by $0.05 each week until the price reaches $8.00.
Plan B: Raise the price by 10 percent each week until the price reaches $8.00,
Plan C: Raise the price by the same amount each week for 6 weeks, so that in the sixth week the price is $8.00
Plan D: Raise the price by $0.25 each week until the price reaches $8.00.
Which plan will result in the price of the bagels reaching $8.00 fastest?
plan A
plan B
planc
plan D

Answer 1

Answer: plan B

Explanation:

A) 5 cents increase a week means you need 60 weeks to increase the desired 3 dollars.

B) a 10% increase a week is expressed the following way: 8 = 5 x(1.1)^n where n is the amount of weeks to arrive from 5 the original price to 8 the final price increasing a 10% weekly. Solving for n= 4.93 then you need 5 weeks to get to 8 dollars. In other words

5 x1.1 x1.1 x1.1 x1.1 x1.1 > 8

C) n = 6 by definition

D) similar to A) increasing 5 times faster means you get to 8 dollars in a fifth of the time aka 12 weeks