1. Grizzly Adams owns an ATV dealership. He sold 1 silver ATV, 6 black ATVs, 17
ID: 1207669 • Letter: 1
Question
1. Grizzly Adams owns an ATV dealership. He sold 1 silver ATV, 6 black ATVs, 17 white ATVs, 7 blue ATVs, 2 yellow ATVs, and 2 red ATVs last month. What are the chances that one randomly selected customer purchased a black or white ATV? (Express as a percentage with one decimal place and then as a whole number/customer.)
2. Dewey Cheatem deposited $25,000 into a savings account. This savings account pays 8% annual interest compounded semi-annually. Beginning a year from now and continuing in perpetuity, equal annual withdrawals are to be made. What is the maximum amount Dewey can withdraw at the end of each year?
3. Barra Moore’s credit card company requires a minimum monthly payment of $19.99. The credit card company charges 21% annual interest. Barra owes $1,000 on this card.
Explanation / Answer
he chances that one randomly selected customer purchased a black or white ATV =
= Number of black + white ATV Sold/Total Number of TV sold*100 = [6+17/1+6+17+7+2+2]*100 = 23/35*100
= 65.7%
2.
Amount after one year of deposit = P(1 + r/2)^2n
So, Amount after one year of deposit = 25,000(1+0.08/2)^2
= 27,040
So, Interest Earned = Amount after one year of deposit - Initial Amount = 27,040 - 25,000
= $2,040
Thus, Dewey can withdraw $2,040 at the end of each year.
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