Question

Matt wants to buy a television. If he

pays cash, he gets a discount of 7%.
If he pays with a loan he has to pay an
extra 10% in interest. The difference
between the two methods is $49.98.
Find the cost of the television, au

Answer 1

The cost of the television is
`\$294`

Explanation:

Let

x -----> the cost of the television in dollars

we know that

The cost of the television represent 100%

If Matt pays cash

then

`100\%-7\%=93\%=93/100=0.93`

so

The cost is 0.93x

If Matt pays with a loan

then

`100\%+10\%=110\%=110/100=1.1`

so

The cost is 1.1x

The difference between the two methods is

`1.1x-0.93x=0.17x`

Remember that

The difference between the two methods is $49.98

so

`0.17x=49.98`

Solve for x

`x=\$294`