# math

Please someone show me how to work this one out?
Suppose Caroline is a cinephile and buys only movie tickets. Caroline deposits \$3000 in a bank acct that pays an annual interest rate of 20%. You can assume that this interest rate is fixed-that is, it won’t change over time. At the time of her deposit, a movie ticket is priced at \$10.00.
Initially, the purchasing power of Caroline’s \$3000.00 deposit is a. 3,000 b. 50 c. 220
d. 300 e. 200 movie tickets.
The price of a movie ticket rises at the rate of inflation. For each of the annual inflation rates in the following table, select the corresponding purchasing power of Caroline’s deposit after one year, and enter the value for the real interest rate.
HINT: Round your answers down to the nearest movie ticket. For ex: if you find that the deposit will cover 20.7 movie tickets, you would round the purchasing poser down to 20 movie tickets under the assumption that Caroline will not buy seven-tenths of a movie ticket.
If the annual inflation rate is at 0% what would be the number of tickets Caroline can purchase after one yr.
a.230
b. 53
c.360
d. 220
If the annual inflation rate is at 20%
a. 150
b. 300
c. 50
d. 200
If the annual inflation rate is at 25%
a. 48
b. 288
c. 192
d. 196
If the annual inflation rate is at 0% what is the real interest rate
a. 10%
b. -20%
c. 0%
If the annual inflation rate is at 20% what is the real interest rate
a. 0%
b. -20%
c. 10%
d. 20%
If the annual inflation rate is at 25% what is the real interest rate
a. -25%
b. 10%
c. 20%
d. -5%
When the rate of inflation is less than the interest rate on Caroline’s deposit, the purchasing power of her deposit a. falls b. remains the same c. rises over the course of the year.

1. 👍
2. 👎
3. 👁
1. 1a. \$3000.

2. Pt = 3000 * 1.20 = \$3600 after 1yr.
N = \$3600 / \$10. = 360 Tickets.

3. N = \$3600 / (1.2*\$10) = 300 Tickets.

4. Same procedure as #3.

5. Rate = 20%.

6. Rate = 2o% - 20% = 0%.

7. Rate = 20 - 25 = -5%.

8. The wording of the prob. and the choices doesn't seem to match.However,
as the inflation rate increases from zero, the buying power decreases.

1. 👍
2. 👎
2. I have no idea

1. 👍
2. 👎

## Similar Questions

1. ### precalc

Suppose that cos θ = 12/13 and that θ is a Quadrant IV angle. (a) Find the exact value of sin θ. Show work. (b) Find the exact value of sin 2θ. Show work.

2. ### Help- Precalc

Suppose that α is an angle such that tan α=(5/7) and sinα0. Find the exact value of sine(α−β) -Direction (Simplify your​ answer, including any radicals. Use integers or fractions for any numbers in the​ expression.)

3. ### History

Without thinking, he twisted his torso to roll out of bed, expecting his legs to follow. In an extremely painful instant, he was reminded of the shattered bones in his right leg. His cry brought his wife, Caroline, running in from

4. ### Pre-Algebra help!

Tom buys \$22.00 plus 7% sales tax. His cousin buys a shirt for \$18.00 plus 4% sales tax. a. How much do Tom and his cousin pay for the shirts? Show your work b. Who spent more on tax? I don't know what I'm suppose to do here. Am I

1. ### Language Arts

Without thinking, he twisted his torso to roll out of bed, expecting his legs to follow. In an extremely painful instant, he was reminded of the shattered bones in his right leg. His cry brought his wife, Caroline, running in from

2. ### Statistics

Suppose. Population of test-scores is normally distributed with mean 65 and standard deviation 13 x~n (65,13) if you select a test at randome what is the probability that the score is below 60 or that it is between 65 and 70

3. ### Math

Enter your answer and show all the steps that you use to solve this problem in the space provided. The two triangles above are similar. A. Find X using the ratio of the sides 12 CM + 16 cm. X over 20 equals 12/16. Show your work.

4. ### math (word problem)

Suppose a car tire has a diameter of 26 inches. How many rotations will thee tire make if the car travels 1 mile? Round to the nearest tenth. If you get answer please show work of how to get there. Thanks!

1. ### pre-cal

aj uses a lingshot to launch a rock straight up from the a point of 6 ft. above ground level with an initial velocity of 170 ft per second. A) find an equation that models the height of the rock t seconds after it is launched. b)

2. ### Algebra

The distance between Caroline's house and Laura's house is 3120m Carolina and Laura leave their house at the same time the two girls cycle towards each other until they meet Caroline speed is 7.2 meters per second and Laura Speed

3. ### Math

I am having a lot of problems in math right now. I am doing practice problems right now and I don't even understand them. I don't really understand it and I do online school. Any help would be appreciated. 1. What is the simplest

4. ### Algebra 2

1.What is the vertex from the equation? Y=x^2+12x=4 (Please show your work to show me the steps to get to the right answer.) 2. Use the quadratic formula to solve the equation. x^2-7x-6=0 (Please show your work to show me the