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MAT 144 Topic 5 Discussions GCU
MAT 144 Topic 5 DQ 1
Select one of the options below and create a linear equation to represent the monthly bill. When will the plans cost the same? Explain when each plan is a better option.
Option 1: Plan A $39.99 for 200 min and $1.25 for each min after. Plan B $29.99 for 200 min and $1.50 for each min after.
Option 2: Plan A $25.75 plus $.75 per min. Plan B $20.99 plus $1.00 per min
Option 3: Plan A $39.99 plus $1.25 per min. Plan B $25.99 plus $1.75 per min
Option 4: Plan A $45.99 for 400 min and $.50 for each min after. Plan B $49.99 for 400 min and $.40 for each min after
MAT 144 Topic 5 DQ 2
In Chapter 1 of the text we looked at calculating a monthly payment for a loan. A related formula is to calculate the amount accruing when regular payments are made into an interest bearing account – often called the Savings Plan formula.
(A is the accrued amount after t years of making regular payments, PMT, into an account at interest rate, r%, compounded n times each year.)
A(t) = PMT·((1 + r/N)N·t – 1)/(r/N)
= PMT*((1 + r/N)^(N*t) – 1)/(r/N)
The second version is essentially in the form used in Excel
Suppose you want to buy a car and have decided that you can save $100 a month. Using information from an internet source, determine the current interest rate on savings accounts and use the information to answer the following:
- How much money will you have saved in a year’s time?
- How much will be interest?
- Why wouldn’t a linear model work here?
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