Theweekly demandfor mouthwashin achain ofdrug storesis 1,160bottles ata priceof $3.79 each. If the price is lowered to $3.59, the weekly demand increases to 1,320 bottles.

1.Theweekly demandfor mouthwashin achain ofdrug storesis 1,160bottles ata priceof

$3.79 each. If the price is lowered to $3.59, the weekly demand increases to 1,320 bottles.Assuming that the relationship between the weekly demand x and price per bottle p islinear, express p in terms of x. How many bottles would the stores sell each week if thepricewere lowered to $3.29?

2.Theresearchdepartmentinacompanythatmanufacturesbicyclesestablishedthefollowingprice-demand, cost, and revenue functions:

p(x) = 50 –1.25x                C(x) = 160 + 10x                R(x) = x (50– 1.25x)

Where x is in thousands of units, and C(x) and R(x) are in thousands of dollars. All threefunctionshave domain1 ≤ x ≤ 40.

2.1Graph the cost function and the revenue function simultaneously in the same coordinatesystem.

2.2Determinealgebraically when R= C. Then, with theaid of part2.1, determine whenR<

Cand R>Cto the nearest unit.

2.3Determine algebraically the maximum revenue (to the nearest thousand dollars) and theoutput (to the nearest unit) that produces the maximum revenue. What is the wholesale price oftheradio (tothe nearestdollar) at this output?

3.BankofBostonoffered acertificateof deposit(CD)thatpaid 1.25%compoundedquarterly.If a$5,000 CD earnsthis ratefor 5 years,howmuch willit beworth?

4.Howlong will ittakeformoneyinvested at6.59%compoundedmonthlyto triple?

5.Ifyou borrow$3,000 at14%simple interestfor 10months, howmuch will youowe in 10months?Howmuch interest will you pay?

6.Starting on his 21st birthday, and continuing on every birthday up to and including his65th,Johndeposits$2,000ayearintoanIRA.Howmuch(tothenearestdollar)willbeintheaccounton John’s 65th birthday, if the accountearns7%compounded annually?

6.1Usethe equationin theTHEOREM1Future Valueof anOrdinary Annuity (p. 150).

6.2Drawacashflowdiagram.Clearlyindicatethenumberofperiods,interestrate,andeachcash flow.

6.3Usethecompoundinterest table (postedonCanvas).