Answere,  Week 7, Problem Solving practice test

1.  Flower Boxes:    12 pots,  21 small boxes,  15 large boxes

         Formulas:    You know that you need 48 boxes.  Lets let x be the small pots,  y be the middle size boxes, and z be the bigger boxes.  Since the sum of all 3 is 48, you have:     x + y + z = 48
         You know that the total you must spend is $129.  Since that is from all 3 types of pots, and each x pot costs $1,  each y box costs $2, and each z box costs $5,   you have this equation:    1x + 2y + 5z  = 129
        Since you have 3 times as many boxed as you have pots, and x is the number of pots,  you have this final equation:    3x = y + z

       Your 3 equations, then are    x + y + z = 48
                                                                  x + 2y + z = 129
                                                                  3x = y + z

Now you have 9 different ways to proceed.  You need to solve for one of the variables.  I would pick the last one:   Subtract z from both sides to get:

                               3x – z = y

Now plug this into the other 2 equations:
                    x + (3x-z) + z = 48
                    x + 2(3x-z) + 5z = 129

Now you have 2 equations and 2 variables.  Notice that you no longer have a y variable.  I will pick the first equation ans slove for x, then plug the answer into the 2nd equation to solve for z.

 x + (3x-z) + z = 48   or  4x – z + z = 48   or  4x = 48, or x = 12.    Now you know that you must buy 12 small pots.   Plug 12 in for x in the second equation:

x + 2(3x-z) + 5z = 129   or   12 + 2(3(12) – z) + 5z = 129    or   12 + 72 – 2z + 5z = 129    or  84 +3z = 129  or  3z = 45  or z = 15

now plug x = 12 and z = 15 into any of the initial equations to find that y = 21.

2.  Music company:   You have 2 equations for the 2 companies:   Since company A charges 75 up front, you start with an expenditure of $75, and the rate of increase is $28 per month   The equation for Comany A is:

                        y = 75 + 28x      (where y is the total expense and x is the month)

Similarly,  Company B’s  formula is     y = 120 + 22.5x

Find when they are both the same, and this ask if this is more or less than 7 months.   To find when they are the same, since both equations = y, set them equal to each other using substitution:

              75 + 28x = 120 + 22.5x    Solve for x, the number of months before the 2 companies will cost the same:

           7.5x = 45   or x = 6.  Therefore, in 6 months each plan will cost you the same.. ie      75 + 28(6)  =  120 + 22.5(6)        Since you are gone in another month, you should choose comany B, since it will cost you only $22.5  for month 7, while Company A will charge $28.       Answer:  Company B

3.  To ship 14,000 hats, you can fill 2 crates of 5000.  This will leave you with 4000 hats to ship.  Divide 300 into 4000.  You will get 13 boxes with a remainer of 100 hats.  You will need 9 bags to send these..  (12 x 9 = 108.. so you will have 1 partial bag)    So, the total cost to ship will be:

10,000(1) + 13(300)(2) + 9(12)(5)   or  10,000 + 7800 + 540  or 18, 340 cents or $183.40

4.  The 2 equations you can use are:    A = P(1 + r/n)^nt,  where r is the rate, n is the number of times you will compound per year, and t is the number of years invested.  P is the Principal amount.    The other equation you will use is the one for compounding continuously, which is:  A = Pe^rt,  where e = the natural log or 2.72.    
            Your choices, then, are    P(1 + .0675/4)^4(2)     or  P(2.72)^.0650(2)

Which one has the highest effective yield?  The base interest is Pr^t, where r is the base interest rate if  you compounded at the end of the year.  Notice t=2 and P = P in this example.   You are, then, comparing  (1 + .0657/4)^4   with  (2.72)^.065     Which is bigger?      The first is 1.06923.   The second is 1.06716.   Therefore, the effective yield for bank A is larger.  Choose Bank A.