Chapter 3 Application Problems

3.1 #72 A small business predicts its revenue growth by a straight line
method with a slope of $50,000 per year. In its fifth year, it had
revenues of $330,000. Find an equation that describes the relationship
between revenues, R, and the number of years, T, since it opened for
business.

3.2 #17 Supply Equation A refrigerator manufacturer will produce

3000 units when the price is $940, and 2200 units when the price is
$740. Assume that price, p, and quantity, q, produced are linearly
related and find the supply equation.
3.3 #29 The demand function for a manufacturer’s product is p = f(q) =
100 – 10q, where p is the price (in dollars) per unit when q units are
demanded (per day). Find the level of production that maximizes the
manufacturer’s total revenue and determine this revenue.
Use: r = pq

3.4 #28 Taxes A company has taxable income of $758,000. The

federal tax is 35% of that portion left after the state tax has been paid.
The state tax is 15% of that portion left after the federal tax has been
paid. Find the federal and state taxes.
 4.1 Application Problems
Ex:1 You invest $5,000 in an account that pays 6.5% annual interest
compounded monthly. Find your balance after 5 years.

Ex: 2 You purchase a new 2018 Honda Accord for $25,000. If its
value depreciates 10.5% each year, what will the car be worth in 2022?