SAT Math : Arithmetic

Study concepts, example questions & explanations for SAT Math

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Example Questions

Example Question #1182 : Sat Mathematics

Ted works over the summer and makes $9 per hour.  He works for 20 hours each week for 10 weeks.  After paying 10% in taxes, he buys a bike for $500 and puts the rest of his money in the bank.

If Ted's bank pays 5% interest on the total sum once per year, and Ted doesn't add or remove anything from the account, how much money (rounded to the nearest cent) will Ted have in 5 years?

Possible Answers:

Correct answer:

Explanation:

To start, we see that Ted works for 20 hours per week for 10 weeks.  This means he works a total of 200 hours over the summer.  He is paid $9 dollars each hour.  Therefore he makes $9 x 200 hours = $1800 total over the summer.  He then has to pay 10% in taxes, or .1 x $1800, leaving him with .  He buys the bike for $500, so he has $1620 - $500 = $1,120 to deposit at the bank.

Now we have to find out how much he will have 5 years later.  Since the bank pays 5% interest each year, we know that he will make 5% of what he has each year.  He starts with $1,120.  5% of this value is .  Adding this to the original $1,120 gives us $1,176.

This is also the same as multiplying instead by 1.05.  We repeat this step 5 times, giving us:

Example Question #4 : Interest

A student puts  in the bank every year for years. If the account has a simple interest rate of  per year, how much money will the student have at the end of the first year?

Possible Answers:

Correct answer:

Explanation:

Simple interest is calculated using the following formula:

Where

future value

= present value

= interest rate

For this problem, that means:

Example Question #1 : How To Find Simple Interest

Andrew received  for his fifteenth birthday. He invested some of the money in an investment account and some of the money in a savings account. Both accounts accrue simple interest. The investment account has an interest of , while the savings account has an interest rate of .

At the end of the year, Andrew earned a total of  in interest. How much money did he put in each account?

Possible Answers:

 in the investment account and  in the savings account

 in the investment account and  in the savings account

 in the investment account and  in the savings account

 in the investment account and  in the savings account

 in the investment account and  in the savings account

Correct answer:

 in the investment account and  in the savings account

Explanation:

Step 1: Set up the system of equations. Simple interest means that interest is calculated at the end of the year. Therefore, the amount of interest at the end of the year is the amount invested times the interest rate.

Let  = the amount put in the investment account

Let  = the amount put in the savings account

Step 2: Use substitution to solve the system.

Substitute  for  in the second equation and solve for :

 

Step 3: Solve for :

Example Question #5 : Interest

You invest $1000 in a bank that gives 5% interest every year on the money in your account. How much interest do you make in 3 years (to the nearest dollar)?

Possible Answers:

Correct answer:

Explanation:

Step 1: We need to convert  percent into a decimal. To do this, we need to move the decimal place back two spots.

. We move the decimal back two spots. The decimal starts right after the .

Step 2: Calculate Simple interest and ending balance for 1 year.

Interest=
Ending Balance=.

Step 3: Calculate Simple interest and ending balance for the next year (2nd year)

Interest=
Ending Balance= 

Step 4: Calculate Simple Interest and ending balance of the third and final year
Interest=
Ending Balance=

Step 5: Add up the interest calculations:

. Over three years, the account gained $158 in interest.

Example Question #1183 : Sat Mathematics

If a student borrows $200,000 at an interest rate of 6% compounded annually, when she graduates in 4 years how much money will she owe? Round to the nearest dollar.

Possible Answers:

Correct answer:

Explanation:

This problem requires knowledge of the compound interest formula, 

Where  is the amount of money owed,  is the sum borrowed,  is the yearly interest rate,  is the amount of times the interest is compounded per year, and  is the number of years.  

We know that the student borrowed $200,000 compounded annually at a 6% interest rate, therefore by plugging in those numbers we find that after she graduates in 4 years she will owe $252,495.

Example Question #1184 : Sat Mathematics

If a student borrows $200,000 at an interest rate of 6% compounded quarterly, when she graduates in 4 years how much money will she owe? Round to the nearest dollar.

Possible Answers:

Correct answer:

Explanation:

This problem requires knowledge of the compound interest formula, 

Where  is the amount of money owed,  is the sum borrowed,  is the yearly interest rate,  is the amount of times the interest is compounded per year, and  is the number of years.  

We know that the student borrowed $200,000 compounded quarterly at a 6% interest rate, therefore by plugging in those numbers we find what she will owe after she graduates in 4 years.

Example Question #1 : How To Find The Sale Price

Maria was shopping for a camera and found one that was on sale for 30% off.  As she went to pay for it, the store announced an instant sale that took an additional 10% off all items.  If the final price Maria paid was $207.27, what was the original price (before all discounts) of the camera?

 

Possible Answers:

$518.18

$767.67

$290.18

$82.91

$329.00

Correct answer:

$329.00

Explanation:

To reconstruct an original price from a sale price, use:

Original Price – Original Price * Mark-down-percent = Sale Price, or

Original Price * (1 - Mark-down-percent) = Sale Price

To do a double mark-down problem, we must do this twice.  For the 10%:

Original Sale Price * (1 – 10%) = $207.27

Original Sale Price = $207.27/0.9 = $230.30.

For the pre-all-discount price,

Original Price * (1 – 30%) = $230.30

Original Price = $230.30/0.7 = $329.00.

 

Example Question #1 : How To Find The Sale Price

An mp3 player costs $100 on day one.  On day two, the shop owner decides to decrease the price by 10% of the day one price.  However, on day three the owner changes her mind and raises the price by 10% of the day two price.  What is the new price of the mp3 player?

Possible Answers:

$100

$99

$98

$101

$102

Correct answer:

$99

Explanation:

10% of the day one price = 0.1(100) = $10.

Therefore the day two price = 100 - 10 = $90.

10% of the day two price = 0.1(90) = $9.

Therefore the day three price = 90 + 9 = $99.

Example Question #1 : How To Find The Sale Price

The price of a purse is reduced by 20%. It is then put on final sale with an additional 30% off. What is the total discount on the purse?

Possible Answers:

48%

40%

56%

44%

50%

Correct answer:

44%

Explanation:

Let us assume that the original purse is $100. The price after the first reduction is $80. After the second reduction the price is now $56. The difference between 100 and 56 is 44, giving 44% off.

Example Question #3 : How To Find The Sale Price

A store is having a sale. If you buy one widget for the regular price of $20, you can buy a second widget for 40% off the regular price. How much per widget does a customer save by buying two widgets during the sale instead of buying two widgets at the regular price?

Possible Answers:

4

20

32

12

8

Correct answer:

4

Explanation:

Widget 1 costs $20.

Widget 2 is on sale for 40%($20) off, or $8 off, or $20 – $8 = $12.

Two widgets during the sale cost $20 + $12 = $32.

Two widgets at regular price cost $20 + $20 = $40.

The total amount saved during the sale is $40 – $32 = $8.

This is the savings for two widgets, so the savings for one widget is $8/2 = $4.

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