what are your finance math skills? the first three questions correlate to math for personal finance features…

what are your finance math skills? the first three questions correlate to math for personal finance features located throughout the chapter. 1. asa wants to get his degree in engineering. he estimates it will take him 5 years to complete the degree and that he will spend about $8,000 a year for tuition, fees, books, room and board. how much will it cost asa to get his degree? 2. doug has been offered two different jobs. one company has offered him $31,000 a year and will furnish a vehicle with a company gas card. the other job will pay him $20 an hour, and he will work 40 hours a week. however, if he takes this job, he will have to furnish his own vehicle and buy his own gas. doug believes the vehicle allowance will save him about $7,000 a year that he would otherwise spend on transportation. which job pays more? which job should doug take?

what are your finance math skills? the first three questions correlate to math for personal finance features located throughout the chapter. 1. asa wants to get his degree in engineering. he estimates it will take him 5 years to complete the degree and that he will spend about $8,000 a year for tuition, fees, books, room and board. how much will it cost asa to get his degree? 2. doug has been offered two different jobs. one company has offered him $31,000 a year and will furnish a vehicle with a company gas card. the other job will pay him $20 an hour, and he will work 40 hours a week. however, if he takes this job, he will have to furnish his own vehicle and buy his own gas. doug believes the vehicle allowance will save him about $7,000 a year that he would otherwise spend on transportation. which job pays more? which job should doug take?

Answer

Explanation:

Step1: Calculate Asa's total cost

Multiply annual cost by number of years. $8000\times5 = 40000$

Step2: Calculate Doug's first - job annual income

It is given as $31000$.

Step3: Calculate Doug's second - job annual income

There are 52 weeks in a year. He works 40 hours a week and is paid $20$ per hour. So the income is $20\times40\times52=41600$. Then subtract the transportation cost he would have saved in the first job. So the net income is $41600 - 7000=34600$.

Answer:

  1. It will cost Asa $40000$ to get his degree.
  2. The first job pays $31000$ a year and the second job pays $34600$ a year. Doug should take the second job.