Culminating Day 1 2. Now that the campfire area has been created, Student Council wants to furnish it but they are going to need to borrow money to pay for it. The school is willing to lend them money to buy 8 chairs at a cost of $225 each. the a) If Student Council made $500 on the Haunted House how much money would they have if they invested it for 3 years at 8% p.a compound interest. Give answer to nearest cent. b) How much would the 8 chairs cost in 3 years if inflation was 2% the first year and 1.5% in each of the second and third years? c) Based on the answer from parts (a) and (b) (ie after the 3 years have passed) how much more money does Student Council need to buy the chairs?
Culminating Day 1 2. Now that the campfire area has been created, Student Council wants to furnish it but they are going to need to borrow money to pay for it. The school is willing to lend them money to buy 8 chairs at a cost of $225 each. the a) If Student Council made $500 on the Haunted House how much money would they have if they invested it for 3 years at 8% p.a compound interest. Give answer to nearest cent. b) How much would the 8 chairs cost in 3 years if inflation was 2% the first year and 1.5% in each of the second and third years? c) Based on the answer from parts (a) and (b) (ie after the 3 years have passed) how much more money does Student Council need to buy the chairs?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. Now that the campfire area has been created, Student Council wants to furnish it but
they are going to need to borrow money to pay for it. The school is willing to lend them
the money to buy 8 chairs at a cost of $225 each.
Culminating Day 1
a) If Student Council made $500 on the Haunted House how much money would they
I have if they invested it for 3 years at 8% p.a compound interest. Give answer to
nearest cent.
b) How much would the 8 chairs cost in 3 years if inflation was 2% the first year and
1.5% in each of the second and third years?
c) Based on the answer from parts (a) and (b) (ie after the 3 years have passed) how
much more money does Student Council need to buy the chairs?
d) Mr. Perusin agrees to lend Student Council the rest of the money (answer from part
(c)) at 8% interest to be paid back over 2 years.
i.
calculate the monthly repayments
ii. how much interest did Student Council have to pay the school?
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