To purchase $11,400 worth of lab equipment for his business, Chau made a down payment of $1900 and took out a business loan for the rest. After
3 years of paying monthly payments of $289.02, he finally paid off the loan.
(a) What was the total amount Chau ended up paying for the equipment (including the down payment and monthly payments)?
(b) How much interest did Chau pay on the loan?
(a) The total amount Chau ended up paying for the equipment is the sum of the down payment and the total of all the monthly payments over three years:
Down payment = $1900
Monthly payments = $289.02 x 36 = $10,404.72
Total amount paid = $1900 + $10,404.72 = $12,304.72
Therefore, Chau ended up paying $12,304.72 for the equipment.
(b) To find out how much interest Chau paid on the loan, we need to subtract the amount borrowed (the total cost of the equipment minus the down payment) from the total amount paid:
Amount borrowed = $11,400 - $1900 = $9500
Total amount paid = $12,304.72
Interest paid = total amount paid - amount borrowed
Interest paid = $12,304.72 - $9500 = $2804.72
Therefore, Chau paid $2804.72 in interest on the loan.
For the first week of March, Betty Hill worked
37.25 hours. Betty earns $17.40 an hour. Her employer pays overtime for all hours worked in excess of 40 hours per week and pays
1.5 times the hourly rate for overtime hours.
Calculate the following for the first week of March (round your responses to the nearest cent if necessary):
1. Regular pay amount: $
2. Overtime pay: $
3. Gross pay:
1. Regular pay amount:
Betty worked 37.25 hours, which is less than the 40-hour threshold for overtime. Therefore, all of her hours are considered regular hours.
Regular pay amount = hours worked x hourly rate
Regular pay amount = 37.25 x $17.40
Regular pay amount = $647.85
2. Overtime pay:
Betty did not work any overtime hours during the first week of March.
Overtime pay = $0
3. Gross pay:
Gross pay is the total amount of pay before any deductions.
Gross pay = regular pay amount + overtime pay (which is $0 in this case)
Gross pay = $647.85
Therefore, Betty's gross pay for the first week of March is $647.85.
Groom Lawn Equipment pays Bob Watson a
$870
monthly salary plus a
5
% commission on merchandise he sells each month. Assume Bob's sales were
$39,500
for last month.
Calculate the following amounts:
1. Amount of Commission: $
2. Gross Pay:
1. Amount of Commission:
Commission = sales x commission rate
Commission = $39,500 x 0.05
Commission = $1,975
Therefore, Bob's commission for the month is $1,975.
2. Gross Pay:
Gross pay is the sum of Bob's monthly salary and his commission.
Gross pay = monthly salary + commission
Gross pay = $870 + $1,975
Gross pay = $2,845
Therefore, Bob's gross pay for the month is $2,845.
Masterson Wood Products pays Scott Brown a
$1820
monthly salary plus a
15
% commission on merchandise he sells each month. Assume Scott's sales were
$82,600
for last month.
Calculate the following amounts:
1. Amount of Commission: $
2. Gross Pay:
1. Amount of Commission:
Commission = sales x commission rate
Commission = $82,600 x 0.15
Commission = $12,390
Therefore, Scott's commission for the month is $12,390.
2. Gross Pay:
Gross pay is the sum of Scott's monthly salary and his commission.
Gross pay = monthly salary + commission
Gross pay = $1820 + $12,390
Gross pay = $14,210
Therefore, Scott's gross pay for the month is $14,210.
Columbia Mirror and Glass pays Frank Young a
$2320
monthly salary plus a
13
% commission on merchandise he sells each month. Assume Frank's sales were
$33,300
for last month.
Calculate the following amounts:
1. Amount of Commission: $
2. Gross Pay:
1. Amount of Commission:
Commission = sales x commission rate
Commission = $33,300 x 0.13
Commission = $4,329
Therefore, Frank's commission for the month is $4,329.
2. Gross Pay:
Gross pay is the sum of Frank's monthly salary and his commission.
Gross pay = monthly salary + commission
Gross pay = $2320 + $4,329
Gross pay = $6,649
Therefore, Frank's gross pay for the month is $6,649.
Suppose Teresa places
$3500
in an account that pays
14%
interest compounded each year.
Assume that no withdrawals are made from the account.
Follow the instructions below. Do not do any rounding.
(a) Find the amount in the account at the end of 1 year.
$
(b) Find the amount in the account at the end of 2 years.