Question

Diep is saving money so he can buy a used car in 12 months. The total cost of the car he wants is $1,450. Diep determines that he needs to save $120 each month to be able to afford the car, as shown below.What error did Diep make?

Answer 1

He made an error of 0.69%

Explanation:

Step one:

Diep savings

time= 12 months

expected savings= $1450

Step two:

let us solve for the amount he needs to save per month.

we do this by dividing the expected savings by 12

1450/12=$120.83

error= actual -expected/expected

error= 120.833-120/120

error=0.833/120

error=0.0069*100

error=0.69%