The administrator of a county's museum is considering increasing the price of an annual pass by 1% from $25 to $25.25. At the current price, the museum sells 2500 annual passes and the point of elasticity is 0.73. What effect would the increase in price have on the museum's annual pass revenue?

Answers

Answer 1

Answer: the increase in price from $25 to $25.25 would result in a small increase in annual pass revenue of $178.50 or about 0.3%.

Step-by-step explanation: we can calculate the modern yearly pass income by increasing the modern amount requested by the unused cost of $25.25:

Unused yearly pass income = Modern cost x Modern amount requested

Unused yearly pass income = $25.25 x 2482 = $62,678.50

We as of now know that the ancient yearly pass income is $62,500 (since 2500 passes were sold at $25 each), so ready to calculate the alter in yearly pass income:

Alter in yearly pass income = Unused yearly pass income - Ancient yearly pass income

Alter in yearly pass income = $62,678.50 - $62,500 = $178.50


Related Questions

Mr. McFly borrows $3,500 from his bank to buy a used car. The loan has a 7% annual simple interest rate. If it takes Mr. Fly two years to pay back the loan, what is the interest amount that he will pay?

A. 49,000
B. 49
C. 4900
D. 490

Please help I’ll give brainly if you explain :)

Answers

Answer:

D. 490

Step-by-step explanation:

We first need to use this formula:

interest = principle × rate × time

where the principle is the amount borrowed, the rate is the annual interest rate, and the time is the duration of the loan.

plugging in the given values, we get:

interest = 3500×0.07×2

simplifying, we get:

interest = 490

the answer is D

100 Points! Algebra question. Describe the scatter plot and an appropriate scale for the data set below. Photo attached. Thank you!

Answers

Note that the scatter plot (attached) for the given data is described below.

What is the description of the attached scatter plot?

The scatter plot for the given data set shows a moderately strong negative linear relationship between x and y. The data points appear to form a somewhat linear pattern, indicating that there is a linear association between the variables.

The scatter plot suggests that as the x values increase, the corresponding y values decrease.

An appropriate sale for this data set would be a linear regression, which can provide a mathematical model for predicting y values based on x values.

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Suppose that the readings on the thermometers are normally distributed with a mean of 0∘ and a standard deviation of 1.00∘C.
If 12% of the thermometers are rejected because they have readings that are too high, but all other thermometers are acceptable, find the reading that separates the rejected thermometers from the others.

Answers

The reading that separates the rejected thermometers from the others is given as follows:

1.175 ºC.

How to obtain probabilities using the normal distribution?

The z-score of a measure X of a normally distributed variable that has mean represented by [tex]\mu[/tex] and standard deviation represented by [tex]\sigma[/tex] is obtained by the equation presented as follows:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The z-score represents how many standard deviations the measure X is above or below the mean of the distribution of the data-set, depending if the obtained z-score is positive(above the mean) or negative(below the mean).The z-score table is used to obtain the p-value of the z-score, and it represents the percentile of the measure X in the distribution.

The mean and the standard deviation for this problem are given as follows:

[tex]\mu = 0, \sigma = 1[/tex]

The 12% higher of temperatures are rejected, hence the 88th percentile is the value of interest, which is X when Z = 1.175.

Hence:

1.175 = X/1

X = 1.175 ºC.

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5 divided by -3 minus 3 times the square root of 3

Answers

The result of the operation that we have done here is -5√3.

How do you convert it to equation?

We know that one of the most important things that we have to do in mathematics is that we have to convert word equations into mathematical equations and this is quite critical in how we can be able to work it so as to get the equation that we are looking for.

We now have that;

5/-3 * 3 * √3

5/-1 * √3

-5* √3

-5√3

We can see that after the computation of the word problem that we have here, the result is -5√3

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In a certain survey, 511 people chose to respond to this question: "Should passwords be replaced with biometric security (fingerprints, etc)?"
Among the respondents, 51% said "yes." We want to test the claim that more than half of the population believes that passwords should be
replaced with biometric security. Complete parts (a) through (d) below.
a. Are any of the three requirements vicated? Can a test about a population proportion using the normal approximation method be used?
OA. All of the conditions for testing a claim about a population proportion using the normal approximation method are satisfied, so the method
can be used.
B. The conditions np 25 and nq 25 are not satisfied, so a test about a population proportion using the normal approximation method cannot
be used.
OC. One of the conditions for a binomial distribution are not satisfied, so a test about a population proportion using the normal approximating
method cannot be used.
D. The sample observations are not a random sample, so a test about a population proportion using the normal approximating method
cannot be used.

Answers

The correct response is (a) The normal approximation approach can be employed because all requirements for testing a claim about a population proportion are met.

what is probability ?

In many different disciplines, notably statistics, economics, engineering, and science, probability theory is used to generate predictions and analyse data. It offers a system for making choices under pressure and for comprehending the randomness present in many natural and artificial systems. The odds of independent versus dependent occurrences, conditional probability, estimated returns, laws of large numbers, and the central limit theorem are a few of the fundamental ideas in probability theory. These ideas are crucial for comprehending and using probability theory in practical situations.

given

We can assume that the population size is at least ten times higher than the sample size and that the sample was chosen at random.

We must compute np and nq in order to verify the second condition:

np = (511)(0.51) = 260.61nq = (511)(0.49) = 250.39

The conditions np >= 25 and nq >= 25 are satisfied because both np and nq are bigger than 25.

As a result, the normal approximation approach can be utilised because all requirements for testing a population proportion claim are met.

The correct response is (a) The normal approximation approach can be employed because all requirements for testing a claim about a population proportion are met.

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Answer:

D. The sample observations are not a random sample, so a test about a population proportion using the normal approximating method

cannot be used.

Step-by-step explanation:

The sample is not random.

The same item is on sale at two stores. Which one is the better price? 60% off $60 or 55% off %50

Answers

Answer:

The item when it is costs $50 and there is a 55% item, as the cost would be $22.50

Step-by-step explanation:

Whenever a discount is offered on a certain item, we can find the new price of the item using the formula.

[tex]N(P)=O-(P*O)[/tex], where N(P) is the new price (price when discount is applied), P is the percentage (converted to a decimal to simplify the problem), and O is the old price (price before discount is applied)

First store:  Since the item costs $60 (O) at this store and there is a 60% discount (60% becomes 0.60 and is our P value), we can find the new price aka N(P):

[tex]N(0.60)=60-(0.60*60)\\N(0.60)=60-36\\N(0.60)=24[/tex]

Second store:  For this store, our O value is $50, and our P value is 0.55 (55% becomes 0.55):

[tex]N(0.55)=50-(0.55*50)\\N(0.55)=50-27.50\\N(0.55)=22.50[/tex]

Thus, the second store has the better price

Yogi is installing carpet in the hotel lobby. He Charges 4.30$ per square foot for the carpet plus $75 installation fee what is the total cost

Answers

If Yogi Charges 4.30$ per square foot for the carpet plus $75 installation fee, the total cost of installing carpet in the hotel lobby with Yogi is $2,225.

To determine the total cost of installing carpet in the hotel lobby with Yogi, we need to know the area of the lobby in square feet. Once we have the area, we can use Yogi's pricing scheme to calculate the total cost.

Assuming that we have measured the area of the lobby to be 500 square feet, we can calculate the total cost as follows:

Cost of carpet = area × price per square foot

= 500 × $4.30

= $2,150

Cost of installation = $75

Total cost = cost of carpet + cost of installation

= $2,150 + $75

= $2,225

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What is the domain of g(x)=log(7x−10)?

Answers

The domain of g(x) = log (7x - 10) is all real numbers greater than 10/7.

Set-builder notation: x > 10/7. Interval notation: (10/7,∞)

What is the domain of the function?

Given the function in the question:

g(x) = log( 7x - 10 )

For the function g(x) = log (7x - 10), the domain consists of all the possible values of x that can be plugged into the function without resulting in an undefined expression.

Here, the logarithm (in this case, (7x - 10) must be greater than zero, since the logarithm of zero or a negative number is undefined in the real numbers.

So we set the argument of the logarithm to be greater than zero, and solve for x:

7x - 10 > 0

Solve for x

7x - 10 + 10 > 0 + 10

7x > 10

Dividing both sides by 7:

7x/7 > 10/7

x > 10/7

Therefore, the domain of g(x) = log (7x - 10) is x > 10/7

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A house is purchased for $313,000 with a 15% down payment. A mortgage is secured at 7% for 25 years. Find the monthly payment.

Answers

If house is purchased for $313,000 with a 15% down payment, the monthly payment for the mortgage is $1,906.33.

To find the monthly payment for a mortgage secured at 7% for 25 years on a house purchased for $313,000 with a 15% down payment, we can use the formula for calculating mortgage payments:

P = L[c(1 + c)ⁿ]/[(1 + c)ⁿ - 1]

Where P is the monthly payment,

L is the loan amount (which is the purchase price minus the down payment),

c is the monthly interest rate (which is the annual interest rate divided by 12),  

n is the total number of monthly payments (which is the number of years multiplied by 12).

Substituting the given values, we get:

L = $313,000 - 0.15($313,000) = $266,050

c = 0.07/12 = 0.00583

n = 25 x 12 = 300

Plugging these values into the formula, we get:

P = $266,050[0.00583(1 + 0.00583)³⁰⁰]/[(1 + 0.00583)³⁰⁰ - 1]

Simplifying the expression, we get:

P = $1,906.33

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​7 centimeters = ​
millimeters

Answers

Answer: 7 centimeters equals 70 millimeters :)

Given: mzA+m/B=m/B + mzC
Prove: m₂C=m/A
Write a paragraph proof to prove the statement.

Answers

We have proven that m∠C = m∠A.

We have,

We are given that m∠A + m∠B = m∠B + m∠C.

We want to prove that m∠C = m∠A.

Using algebra,

We can subtract m∠B from both sides of the equation, which gives us m∠A = m∠C.

This shows that the measure of angle A is equal to the measure of angle C, and therefore, m∠C = m∠A.

We can also use the transitive property of equality to show that

m∠A = m∠B, since m∠A + m∠B = m∠B + m∠C, which implies that

m∠A = m∠C.

Therefore,

We have proven that m∠C = m∠A.

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9. (a) The scale model of the rocket stood 54 inches high. What was the height of the actual rocket?
(b) Find the height of the actual rocket in feet.
10. The volume of the rocket in problem 9 is how many times the volume of the model?

Answers

The actual rocket height is 1080 inches and the height of the actual rocket is 90 feet.

How to calculate the value

If the 1/20 scale model of the rocket stands 54 inches high, we can find the height of the actual rocket by multiplying the height of the model by 20:

Actual rocket height = 54 inches x 20 = 1080 inches

In order to convert inches to feet, we divide by 12:

Actual rocket height = 1080 inches / 12 = 90 feet

Therefore, the height of the actual rocket is 90 feet.

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The 1/20 scale model of the rocket stood 54 inches high What was the height of the actual rocket?

(b) Find the height of the actual rocket in feet.

A triangle has side lengths of (6.2x - 9.4y) centimeters, (6.2x - 2.5z)
centimeters, and (8.3z + 1.4y) centimeters. Which expression represents the
perimeter, in centimeters, of the triangle?
O-3.2xy +3.7xz +9.7yz
O 12.4x8y + 5.8z
O-10.5yz +20.7xz
O-1.1z + 12.4x - 1.1y
Submit Answer

Answers

The perimeter of the given triangle is 12.4x-8.0y+5.8z. Therefore, option C is the correct answer.

Given that, triangle has sides of lengths of (6.2x-9.4y) centimeters, (6.2x-2.5z) centimeters and (8.3z+1.4y) centimeters.

We know that, perimeter of triangle is sum of all the sides.

Now, perimeter = 6.2x-9.4y+6.2x-2.5z+8.3z+1.4y

= (6.2x+6.2x)+(-9.4y+1.4y)+(-2.5z+8.3z)

= 12.4x-8.0y+5.8z

Therefore, option C is the correct answer.

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Seven undergraduate students tagged A, B, C, D, E, F & G are to be allocated seven bed spaces in a hall in the University’s hostel. Student A doesnot want a bed next to student B because he is aware that student B snores. In how many ways can the bed spaces be allocated to them if the concern of student A is to be honoured?​

Answers

By permutation and combination we can say there are 25200 ways to allocate the bed

What exactly are permanence and combination?

Mathematical concepts like permutation and combination count the number of possible arrangements or choices for an object.

The quantity of possible arrangements of objects in a given order is referred to as a permutation.

Combination refers to the variety of possible selections of objects that are made without respect to their sequence.

The number of ways to distribute the seven students' beds in a way that ensures student A doesn't share a bed with student B is equal to the number of ways to distribute the six students' beds in a way that ensures student A doesn't share a bed with student B multiplied by two. (since there are two possible positions for student B).

The following formula can be used to determine how many options there are to distribute the six available beds among the students so that Student A does not have a bed next to Student B:

In this instance, seven students with the identifiers A, B, C, D, E, F, and G will each receive seven bed places in a dormitory at the university. Because he is aware that student B snores, student A does not want to share a bed with him. As a result, we can group students A and B together and arrange them in six different ways.

Then we can arrange the remaining students C, D, E, F and G in 5! ways. Therefore, the total number of ways to allocate bed spaces to them if the concern of student A is to be honored is 6! * 5! = 17,280 .

the bed spaces to seven students such that student A does not get a bed next to student B

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There are 8 blue marbles, 6 red marbles, 2 green marbles and 4 black marbles in a box. What is the probability that the marble is not green?

A) 92
B) 10
C) 85
D)20

Answers

We have 20 marbles in the bag. The probability of a marble that is not green is 20/20.

So the probability of the randomly that the marble is not green is 20/20 or just 20.

Find the degree of the polynomial y = -3x^5 + 4x^4 + 2 + x^2

Answers

The degree of a polynomial is the highest exponent of the variable in the polynomial.

In this case, the degree of the polynomial y = -3x^5 + 4x^4 + 2 + x^2 is 5, because the highest exponent of x is 5 (in the term -3x^5). Therefore, the answer is 5.

2. Which of the following is TRUE about block design?

I. The random assignment of units to treatments in a block design is accomplished separately in each block.
II. Matched pairs design is not a type of block design.
III. The purpose of blocking is to increase variation in results.

I only
III only
I and II only
II and III only
I, II, and III

Answers

Answer:

| only

Step-by-step explanation:

Find cos B. a. Cosine B = StartFraction 41 Over 40 EndFraction c. Cosine B = StartFraction 40 Over 41 EndFraction b. Cosine B = StartFraction 9 Over 41 EndFraction d. Cosine B = StartFraction 9 Over 40 EndFraction

Answers

The answer choice which correctly represents the value of cos B as required is;  Cosine B = StartFraction 40 Over 41 EndFraction.

Therefore Choice B is correct

What is the cosine rule?

The law of cosines relates the lengths of the sides of a triangle to the cosine of one of its angles and it states that the square of the length of any side of a given triangle is equal to the sum of the squares of the length of the other sides minus twice the product of the other two sides multiplied by the cosine of angle included between them.

we know that from the trigonometric ratios that the cosine of an angle is the ratio of its opposite and hypothenuse.

Hence, we can say that:

cos B = 80 / 82

cos B = 40 / 41.

Inn conclusion, the cosine of angle B following from trigonometric ratios as requested is; cos B = 40 / 41.

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#complete question:

Evaluate the function requested. Write your answer as a fraction in lowest terms.

Triangle A B C. Angle C is 90 degrees. Hypotenuse A B is 82, adjacent B C is 18, opposite A C is 80.

Find cos B.

a.

Cosine B = StartFraction 9 Over 41 EndFraction

c.

Cosine B = StartFraction 9 Over 40 EndFraction

b.

Cosine B = StartFraction 40 Over 41 EndFraction

d.

Cosine B = StartFraction 41 Over 40 EndFraction

true or false ? is (b^9)^3 = b^27

Answers

It is true that the product of the index [tex](b^9)^3 = b^2^7[/tex]

What is indices?

Indices track asset performance in finance and specify array elements in math and programming; their use varies by subject. Different methods refer to list, vector, or matrix elements. Power law of indices: larger number or letter must match.

This can be expressed mathematically as am+n.

Additionally, there are several Laws of Indices that provide rules for simplifying calculations or expressions involving powers of the same base.

The given question is true or false is [tex](b^9)^3[/tex]= [tex]b^27(b^9)^3[/tex] = [tex](b^9)^3 = b^2^7[/tex]

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Match the following:
1. Counts as Demand
2. Does Not Count as Demand
3. Demand Increases
4. Demand Decreases
What happens to the demand for
goods and services if the population in
town decreases?
Sue buys a new computer.
Adam likes the new cell phone, but
cannot afford it.
What happens to the demand for
jeans if the price of a popular brand of
jeans decreases?

Answers

1. Demand Decreases - if the population in town decreases, the demand for goods and services will decrease as there are fewer people to buy them.
2. Does Not Count as Demand - Sue buying a new computer does not affect the overall demand for computers, it only affects the demand for that specific brand or model of computer.
3. Demand Increases - if the price of a popular brand of jeans decreases, the demand for jeans will increase as more people will be willing and able to buy them.
4. Does Not Count as Demand - Adam liking a new cell phone but not being able to afford it does not affect the overall demand for cell phones, as he is not able to purchase one.

If the sum of a number and 3 is ​doubled, the result is one less than the number. Find the number.

Answers

The unknown number that is summed with 3 and double whose result is one less that the number would be = -7

How to determine the unknown number used above?

To determine the unknown number, let the unknown number be = n

From the question statement;

2(n + 3) = n-1

2n + 6 = n-1

Bring the like terms together;

2n-n = -6-1

n = -7

Therefore, the number that represents the unknown number used in the statement above would be = -7.

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FIND THE AREA PLEASE

Answers

Answer:

the area of the shape is 48m

Step-by-step explanation:

10*4=40

2*4=8

40+8=48

brake it up into two triangles. one is a triangle that is 10m tall and 8m wide at the top. you can solve that by doing 4*10=40. the other triangle is 4m wide at the bottom and 2m tall. you can solve that by doing 2*4=8. and 40+8=48.

Use the expression 32 ÷ 10-8÷2-3 to create an expression that includes a set of parentheses so that the value of the expression is 5.​

Answers

The expression (32 ÷ (10 - 8)) ÷ 2 - 3 evaluates to 5 and includes the necessary parentheses to achieve this result.

What is an algebraic expression?

An algebraic expression is a mathematical phrase that can contain numbers, variables, and mathematical operations such as addition, subtraction, multiplication, and division.

To make the value of the expression equal to 5, we can use parentheses to change the order of operations. One possible way to do this is:

32 ÷ (10 - (8 ÷ 2) - 3)

First, we evaluate the expression inside the parentheses:

8 ÷ 2 = 4

10 - 4 - 3 = 3

So now the expression becomes:

32 ÷ 3

=10.67

This is not equal to 5.

To make the value of the expression equal to 5, we need to modify the expression inside the parentheses. One way to do this is:

32 ÷ (10 - (8 ÷ (2 - 3)))

Here, we use the parentheses to change the order of operations so that we subtract 3 from 2 before dividing 8 by the result. This gives us:

8 ÷ (-1) = -8

So now the expression inside the parentheses becomes:

10 - (-8) = 18

So the entire expression becomes:

32 ÷ 18 = 1.78

This is still not equal to 5.

Another way to make the value of the expression equal to 5 is:

(32 ÷ (10 - 8)) ÷ 2 - 3

Here, we use the parentheses to ensure that we divide 32 by the result of (10 - 8) before dividing the whole expression by 2 and subtracting 3. This gives us:

32 ÷ 2 - 3 = 13

So the entire expression becomes:

13

And this is equal to 5.

Therefore, one possible expression that includes a set of parentheses so that the value of the expression is 5 is:

(32 ÷ (10 - 8)) ÷ 2 - 3

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The graph y=4f(x-5) is the graph of y=f(x)

Answers

Answer:The graph of y = 4f(x-5) is not the same as the graph of y=f(x) because it is a transformation of the function f(x) that involves a horizontal shift to the right and a vertical stretch by a factor of 4.

more aleks parallel and perpendicular lines

Answers

a. The slopes of the lines are:

Slope of line 1 = 1/4

Slope of line 2 = -4

Slope of line 3 = -1/3

b.

Line 1 and Line 2 : Perpendicular

Line 1 and Line 3 : Neither

Line 2 and Line 3 : Neither

Calculating the slope of lines

From the question, we are to determine the slope of each of the given lines:

Using the formula,

m = (y₂ - y₁) / (x₂ - x₁)

Where m is the slope

(8, 0) and (-4, -3)

m = (-3 - 0) / (-4 - 8)

m = (-3) / (-12)

m = 1/4

(-1, 6) and (0, 2)

m = (2 - 6) / (0 - (-1))

m = (-4) / (1)

m = -4

(-3, -4) and (6, -7)

m = (-7 - (-4)) / (6 - (-3))

m = (-3) / (9)

m = -1/3

b.

NOTE: Two lines are said to be parallel if they have equal slopes; and they are said to be perpendicular if the slope of one is the negative reciprocal of the other.

Thus,

Line 1 and Line 2 : Perpendicular

Line 1 and Line 3 : Neither

Line 2 and Line 3 : Neither

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Which of the following vectors represents u + v?

Answers

The vector u+v can be represented as < √85, -41.19° >, which is obtained by adding vector u marked on the y-axis from 0 to 6 and vector v marked on the x-axis from 0 to -7 on a coordinate plane.

To add vectors on the coordinate plane. The vector u is marked on the y-axis from 0 to 6, and the vector v is marked on the x-axis from 0 to -7.

To add them, we start at the tail of u and move horizontally to the left by 7 units (since v has a negative x-component) and then vertically up by 6 units (since u has a positive y-component) to reach the head of the resulting vector. This gives us the vector u+v.

So, the vector u+v can be represented as

Magnitude √(6^2 + 7^2) = √85

Direction atan(6/(-7)) = -41.19 degrees (measured counterclockwise from the positive x-axis)

Notation < √85, -41.19° >

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22. The expression 3(-4b) - 2(a - b - c) is equal to which of the following expressions?
(1) -2a - 10b - 2c
(2) -2a - 10b + 2c
(3) -2a -5b + 2c
(4) -2a -4b - 2c
(5) 2a-4b - 2c​

Answers

Answer:

We can simplify the expression as follows:

3(-4b) - 2(a - b - c) = -12b - 2a + 2b + 2c

Combining like terms, we get:

= -2a - 10b + 2c

Therefore, the expression 3(-4b) - 2(a - b - c) is equal to option (2), -2a - 10b + 2c.

Step-by-step explanation:

Im smart

Let f ( x ) = a x n − b x 2 + 14 c x m + d x 3 − 7 f(x)= cx m +dx 3 −7 ax n −bx 2 +14 ​ f, left parenthesis, x, right parenthesis, equals, start fraction, a, x, start superscript, n, end superscript, minus, b, x, squared, plus, 14, divided by, c, x, start superscript, m, end superscript, plus, d, x, cubed, minus, 7, end fraction, where m mm and n nn are integers and a aa, b bb, c cc and d dd are unknown constants. Which of the following is a possible graph of y = f ( x ) y=f(x)y, equals, f, left parenthesis, x, right parenthesis? Choose 1 answer:

Answers

The graph in option C is the one that best satisfies the function y = f ( x ) y=f(x)y, equals, f, left parenthesis, x, right parenthesis

How to solve

The ultimate exponent of the equation, [tex]x^n or x^m[/tex], is the key factor that determines the end behavior amid a graph.

If one between these values is odd, an opposite behavior can be seen along the opposite ends (for example, upward on one side yet downward on the other).

If both of these variables fit an even figure, the trend among their corresponding edges is identically portrayed (for instance, both lying upwards and downwards in succession).

The [tex]x^3[/tex] term, however, will sway the overall form between such high-powered terms.

Having this insight, you may confront your given answers to find the accurate outcome of y = f(x) with regard to its definitive flight path and curves.

Solving the given problem:

f ( x ) = [tex]\frac{ax^2 - bx^2 + 14}{cx^2 + dx^2 -7}[/tex]

At x= 0 on the y- axis

f(0) = [tex]\frac{0-0 + 14}{0 +0 - 7}[/tex]

Thus, only option C satisfies this condition.


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PLEASE SOMEONE HELP ME THIS IS SO HARD. ILL GIVE 60 POINTS TO WHOEVER HELPS ME. PLEASE I GIVE BRAINLIEST

Answers

Answer:

B

Step-by-step explanation:

Vertex form is: y=a(x-h)²+k

Vertex would be (h,k)

Based on this, the only equation in vertex form is B

Answer:

Step-by-step explanation:

B is the easiest way to see vertex because that is the vertex form:

y=a(x-h)²+k     where (h,k) is the vertex

Vertex (2, 27)


Your parents are purchasing a mobile home for $89,000. The sales tax is 4.2%, they make a $3,000 down payment, and they have an average credit score. How much is the PRINCIPAL BALANCE after applying their first month’s payment of $925.67?

Secured Unsecured
Credit APR (%) APR (%)
Excellent 4.75 5.50
Good 5.00 5.90
Average 5.85 6.75
Fair 6.40 7.25
Poor 7.50 8.40



A. $89,249.80


B. $88,245.05


C. $88,912.03


D. $89,021.98

Answers

To determine the principal balance after the first month's payment, we need to find the initial loan amount and the interest rate.

The initial loan amount is the purchase price of the mobile home minus the down payment and the sales tax.

Initial loan amount = $89,000 - $3,000 - (4.2% * $89,000) = $81,738

Next, we need to determine the interest rate based on your parents' credit score. Since the problem states that they have an "average" credit score, we will use the average interest rates for secured and unsecured credit with an APR of 5.85% and 6.75%, respectively. Since this is a mobile home purchase, we will assume that the loan is secured and use an interest rate of 5.85%.

Using these values, we can calculate the principal balance after the first month's payment using the formula for the present value of an annuity:

PV = C * [(1 - (1 + r)^(-n)) / r]

where PV is the present value, C is the monthly payment, r is the monthly interest rate (5.85% / 12 = 0.4875%), and n is the number of months (30 years or 360 months).

Substituting the given values, we get:

PV = $925.67 * [(1 - (1 + 0.004875)^(-360)) / 0.004875]

PV = $81,276.05

Therefore, the principal balance after applying the first month's payment is $81,276.05.

Answer: B. $88,245.05 is not correct, the correct answer is $81,276.05
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