You are debating whether to buy a new computer for $1,360.00 with a discount of
10% and sales tax of 6.5% or a refurbished computer with the same equipment for
$1,095.00 and sales tax of 5.75%. If a savings account earns a 3.75% APR, how
much do you really save with a refurbished computer if you put the difference into
the savings account for a year and calculate using the simple interest formula?
Be sure to include in your response:
• the answer to the original question
the mathematical steps for solving the problem demonstrating mathematical
reasoning

You are debating whether to buy a new computer for $1,360.00 with a discount of 10% and sales tax of 6.5% or a refurbished computer with the same equipment for $1,095.00 and sales tax of 5.75%. If a savings account earns a 3.75% APR, how much do you really save with a refurbished computer if you put the difference into

the savings account for a year and calculate using the simple interest formula?

Answer:

Tabulate the options:

New computer prize: Marked price -discount price+ Tax

= $1,360 - 10% of $ 1,360+ 6.5% ($1,360-10% of $1,360)

= $1, 303.56

Refurbished: Selling price +sale tax

=$1,095 + 5.75 % of $1,095

= $ 1, 157.96

Then,

The difference in price =Refurbished -New computer prize

= $ 1, 157.96 - $1, 303.56

=$145.60

And

Interest = $145.60*3.75% = $5.46

Now

Your total savings buying the refurbished computer would be

=The difference in prize + interest

$145.60 +$5.46 = $151.06

We save $151.06 with a refurbished computer