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Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

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BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

John Rock has narrowed down his selection of a new cell phone to two models with similar features. Model 800 is plug-compatible with his existing car charger and remote earbud/microphone and will cost $140. There is a $35 mail-in rebate for the Model 800. His other choice is the Model 300, which is not plug-compatible with his existing accessories. The price of the Model 300 is $89, and it has a $20 mail-in rebate. But if he buys the Model 300, he will also have to buy the car charger for $30 and an earbud/microphone for $23.

a. All considered, which model would be the least expensive choice? By how much?

b. For either cell phone choice, the monthly charge will be $34 per month with a $5 rebate if fewer than 250 minutes are used during the month. Government fees and taxes will be $9, the access fee is $7, and the Internet connection charge is $15. Based on last year’s usage, John estimates that he will use fewer than 250 minutes in May, June, August, and October. If John’s service starts on January 1, how much will he spend in the next year on cellular phone services?

(a)

To determine

To calculate: Which model would be the least expensive choice and by how much if model 800 cost $140 and the model 300 has a price of $89.

Explanation

Given Information:

Model 800 is plug compatible with the existing car charger and remote ear bud/microphone and will cost $140. The mail-in rebate for the model 800 is $35 and the model 300 has a price of $89 but with model 300 there is an additional cost of car charger for $30 and ear bud/microphone for $23. The mail-in rebate for model 300 is $20.

Formula used:

Steps for adding whole number,

Step 1: Line up the place values by writing the whole numbers in column- units, tens, hundreds, thousands, and so on.

Step 2: Starting from the right with the units column, add the digits in each column.

Step 3: Write the units digit and carry the tens digit to the top of the next column to the left, when the total in column is greater than 9.

Steps for subtracting whole number,

Step 1: Line up the place values by writing the whole numbers in column- units, tens, hundreds, thousands, and so on.

Step 2: Starting from the right with the units column, subtract the digits in each column.

Step 3: A digit must be borrowed from the column to the left of the working column, if the column cannot be subtracted.

Calculation:

Consider the model 800.

It has a cost of $140.

The mail-in rebate of the model is $35

So the net cost of the model 800 will be,

14035

So the expression becomes,

       140       35               ¯

Consider the operation, and line up the place values.

       140       35               ¯

Now, subtract the digits in each column starting from the right with the unit’s column.

As the column cannot be subtracted, a digit is borrowed from the column to the left of the working column.

         3        140       35           5   ¯

Now proceed further similarly,

         3        140       35        105   ¯

Therefore, the net cost of the model 800 is $105.

Consider the model 300.

It has a cost of $89.

The mail-in rebate of the model 300 is $20.

The additional costs of car charger and ear bud/microphone are $30 and $23 respectively.

The total cost of the model 300 will be,

89+30+23

So the expression becomes,

     89      30 +   23            ¯

Now, add the digits in each column starting from the right with the unit’s column.

     89      30 +   23            ¯

As the sum of the column is greater than 9 then, unit digit is written and tens digit will be carried to the top

(b)

To determine

To calculate: How much money will be spend next year on cellular phone service if the monthly charges are $34 per month with a $5 rebate if fewer than 250 minutes are used during the month.

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