Financial Math A: Discussion Based Assessments

1. Esther works for a marketing company. She earns $12 per hour, and she gets a $50 travel
allowance every month. Which linear equation could be used to find her monthly pay
rate?
⇒ Y = 12x + 50
(Y is equal to twelve times X plus fifty.)
2. Jessie is making a $5,000 investment that will be compounded annually at 10% for the
next 10 years. What’s the future value of the original investment?
𝑟
Hint: use the future value formula: FV = PV (1 + 𝑛 )nt

$ 12,968.71
⇒
(twelve thousand nine hundred sixty-eight dollars and seventy-one cents)

3. An investment worth $50,000 has these expectations of returns:

● 30% chance of ending up worth $40,000 =$12,000

● 50% chance of ending up worth $50,100 =$25,000
● 20% chance of ending up worth $65,000 =$13,000

Determine the expected value of the investment.

⇒ The expected value of the investment is $50,050.00

(fifty thousand and fifty dollars)