Question

Hakim is saving money to buy a computer.

Part A: Hakim invests $800 in a bank that pays 5% simple interest annually. How much money does he have after 1 full year in total?
A) $840
B) $820
C) $900
D) $780

Part B: The original cost of the computer is $860.00. The computer is on sale for a 15% discount off the original cost. The tax is 4% of the sale price. What is the final cost of the computer?
A) $717.40
B) $728.00
C) $745.20
D) $699.60

Part C: Will Hakim have enough money in his bank account to buy the computer at its final price? How much more money does Hakim need or how much extra money does he have?
A) Hakim has enough money.
B) Hakim needs an additional $10.
C) Hakim needs an additional $20.
D) Hakim needs an additional $50.

Answer 1

Hakim has a total of $840 after one year with simple interest. The final cost of the computer after discount and tax is $760.24, so none of the given options for the cost in Part B are correct. Hakim has enough money to buy the computer and will have an extra $79.76 left over.

Step-by-step explanation:

The total amount of money Hakim has after 1 full year with simple interest at 5% annually on an $800 investment is calculated as follows:

Simple Interest = Principal × Rate × Time

= $800 × 5% × 1

= $800 × 0.05 × 1

= $40

Total Amount = Principal + Interest

= $800 + $40

= $840

So, after one year, Hakim has $840 in total (Answer A).

For Part B, the final cost of the computer after a 15% discount and 4% sales tax is calculated as follows:

Discounted Price = Original Price - (Discount % × Original Price)

= $860 - (15% × $860)

= $860 - (0.15 × $860)

= $860 - $129

= $731

Sale Price with Tax = Discounted Price + (Tax % × Discounted Price)

= $731 + (4% × $731)

= $731 + (0.04 × $731)

= $731 + $29.24

= $760.24

Hence, the final cost of the computer is $760.24, so none of the given options (A-D) for Part B are correct.

For Part C, Hakim's ability to buy the computer is:

Hakim has $840 and the computer costs $760.24. Therefore, Hakim has enough money because $840 - $760.24 = $79.76 extra.

Hakim has enough money and will have $79.76 extra (Option A).