Rational Equations in Financial Contexts — Quiz Answers

A family spends $⁢2,984 per month on necessities. They decide to save 12% of their gross income for a vacation. They want the ratio of necessities and vacation savings to gross income to equal 0.65 Complete the equation they can use to find the monthly gross income, x , they need to earn to meet these goals.

A couple spends $⁢3,200 on necessities each month. They would like to save 6% of their gross income for a vacation. They want the ratio of necessities and vacation savings to gross income to equal 0.6 Which equation can they use to find the monthly gross income, x , they need to earn to meet these goals?

An investor has $⁢25,000 to invest in stocks and bonds. She wants the ratio of stocks to bonds to be 3 to 2 Which equation can she use to find the amount to invest in bonds, x ?

An investor is buying more shares of a stock that is currently trading at $⁢24.89 Previously, he bought 250 shares of this stock for $⁢6,304 He wants the average purchase price of all the shares to be $⁢19.55 The average purchase price is the total amount spent divided by the total number of shares. Complete the equation that he can use to find how many shares to buy to achieve his desired average purchase price.

A start-up wants to make a product at an average cost of $⁢2.75 apiece. You can find the average cost of production by dividing the cost to produce a certain number of units, x , by the number of units. The cost of production includes a setup fee of $⁢1,200 and a cost per unit of $⁢1.85 Which equation can find the number of units that fit into the start-up's budget?

A person has $⁢15,000 to invest in stocks and bonds. They would like the ratio of stocks to bonds to be 4 to 5 Complete the equation they can use to find the amount in stocks, x

An investor purchased 300 shares of a stock for $⁢2,604 He is buying more shares at a rate of $⁢12.20 He wants the average purchase price of all the shares to be $⁢10.15 The average purchase price is the total amount spent divided by the total number of shares. Which equation can he use to find the number of shares to buy to achieve his desired average purchase price?

An employee wants to save 18% of her gross income for retirement. Her company contributes 4.5% of each employee's gross income to a retirement savings account. The employee is also saving $⁢75 per paycheck. Complete the equation to determine what the employee's gross income, x , needs to be for the savings rate to be 18%

A company has determined that a new product needs to have an average cost of production of $⁢12.75 per unit. To find the average cost of production, divide the cost to produce a certain number of units, x , by the number of units. The supplier has a setup fee of $⁢3,600 and a cost per unit of $⁢9.84 Complete the equation that can be used to find the number of units the company should order to achieve this average cost of production.

An employee saves $⁢55 per paycheck in addition to 4.25% of his gross income. An advisor says his savings-to-income ratio should be 1 to 5 Complete the equation the employee can use to determine the amount he must make, x , with this savings structure to follow the advisor's recommendation.