# MAT 144 Topic 5 Discussions GCU

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## MAT 144 Topic 5 Discussions GCU

MAT 144 Topic 5 DQ 1

Select one of the options below and create a linear equation to represent the monthly bill. When will the plans cost the same? Explain when each plan is a better option.

Option 1: Plan A \$39.99 for 200 min and \$1.25 for each min after. Plan B \$29.99 for 200 min and \$1.50 for each min after.

Option 2: Plan A \$25.75 plus \$.75 per min. Plan B \$20.99 plus \$1.00 per min

Option 3: Plan A \$39.99 plus \$1.25 per min. Plan B \$25.99 plus \$1.75 per min

Option 4: Plan A \$45.99 for 400 min and \$.50 for each min after. Plan B \$49.99 for 400 min and \$.40 for each min after

MAT 144 Topic 5 DQ 2

In Chapter 1 of the text we looked at calculating a monthly payment for a loan.  A related formula is to calculate the amount accruing when regular payments are made into an interest bearing account – often called the Savings Plan formula.

(A is the accrued amount after t years of making regular payments, PMT, into an account at interest rate, r%, compounded n times each year.)

A(t) =  PMT·((1 + r/N)N·t – 1)/(r/N)

= PMT*((1 + r/N)^(N*t) – 1)/(r/N)

The second version is essentially in the form used in Excel

Suppose you want to buy a car and have decided that you can save \$100 a month.  Using information from an internet source, determine the current interest rate on savings accounts and use the information to answer the following:

1. How much money will you have saved in a year’s time?
2. How much will be interest?
3. Why wouldn’t a linear model work here?

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