You are debating about whether to buy a new computer for $800.00 or a refurbished computer with the same equipment for $640.00. If a savings account earns 4.5% APR interest, how much do you really save with a refurbished computer if you put the difference into the savings account for a year?
Be sure to include the following in your response:
-The answer to the original question
-The mathematical steps for solving the problem demonstrating mathematical reasoning
$800 - $640 = $160
So you invest $160 for one year and get 4.5 % interest on it.
$160 * 1.045 = $167.20 in the bank after one years interst is added.
