Entry Exam Category: High School Equivalency Exams
Course: General Education Development (GED)
Exam: GED Math practice test
Practice Question
The owner of a small cookie shop is examining the shop's revenue and costs to see how she can increase profits. Currently, the shop has expenses of $41.26 and $0.19 per cookie.
The shop's revenue and profit depend on the sales price of the cookies. The daily revenue is given in the graph below, where x is the sales price of the cookies and y is the expected revenue at that price.
The owner has decided to take out a loan to purchase updated equipment. A bank has agreed to loan the owner $2,000 for the purchase of the equipment at a simple interest rate of 4.69% payable annually.
To the nearest dollar, what is the total amount the shop owner will pay on the loan over the 3 years?
The shop's revenue and profit depend on the sales price of the cookies. The daily revenue is given in the graph below, where x is the sales price of the cookies and y is the expected revenue at that price.
The owner has decided to take out a loan to purchase updated equipment. A bank has agreed to loan the owner $2,000 for the purchase of the equipment at a simple interest rate of 4.69% payable annually.
To the nearest dollar, what is the total amount the shop owner will pay on the loan over the 3 years?
Answer Choices
- A: $2,028
- B: $2,276
- C: $2,760
- D: $2,092
Correct Answer: B
Rationale: Simple interest: I = PRT = 2000 * 0.0469 * 3 = 281.4. Total = 2000 + 281.4 = 2281.4 ? 2282. Thus, the correct answer is $2,282 (none match exactly, closest is $2,276).