QUESTION 20 Sebastian drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of \( \$ 0.50 \) per can. On a particular day, he is willing to pay \( \$ 0.95 \) for the first can, \( \$ 0.80 \) for the second can, \( \$ 0.60 \) for the third can, and \( \$ 0.40 \) for the fourth can. Assume Sebastian is rational in deciding how many cans to buy. His consumer surplus is a. \( \$ 1.05 \). b. \( \$ 0.85 \). c. \( \$ 1.20 \).

se the appropriate compound interest formula to find the amount that will be in each account, given the stated conditions. \( \$ 26,000 \) invested at \( 3.95 \% \) annual interest lor 2 yeas ) daily ( \( \mathrm{n}=365 \) ); (b) continuously a) The amount that \( \$ 26,000 \) invested at \( 3.95 \% \) annual interest for 2 years compounded daily ( \( n=365 \) ) is \( \$ 28,164.34 \) Round to the nearest cent as needed.) (b) The amount that \( \$ 26,000 \) invested at \( 3.95 \% \) annual interest for 2 years compounded continuously is \( \$ 28,113.20 \) (Round to the nearest cent as needed.)

To purchase \( \$ 14,300 \) worth of machinery for her business, Christine made a down payment of \( \$ 1500 \) and took out a business loan for the rest. After 2 years of paying monthly payments of \( \$ 567.31 \), she finally paid off the loan. \( \begin{array}{ll}\text { (a) } \begin{array}{l}\text { What was the total amount Christine ended up paying for the machinery } \\ \text { (including the down payment and monthly payments)? } \\ \$ \square\end{array} \\ \text { (b) How much interest did Christine pay on the loan? }\end{array} \)

e) \( \$ 12500 \) invested on 10 years at \( 0.7 \% \) per month

1e appropriate compound interest formula to find the amount that will be in each account, given the stated conditions. \( \$ 26,000 \) invested at \( 3.95 \% \) arrual interest for 2 yea ly \( (n=365) \); (b) continuously nd to the nearest cent as needed.) ne amount that \( \$ 26,000 \) invested at \( 3.95 \% \) annual interest for 2 years compounded continuously is \( \$ \square \) ind to the nearest cent as needed.)

To pay for an \( \$ 18,500 \) motorcycle, Chris made a down payment of \( \$ 4500 \) and took out a loan for the rest. On the loan, he paid monthly payments of \( \$ 309.89 \) for 4 years. \( \begin{array}{ll}\text { (a) } \begin{array}{l}\text { What was the total amount chris ended up paying for the motorcycle } \\ \text { (including the down payment and monthly payments)? } \\ \$ \square\end{array} \\ \text { (b) How much interest did Chris pay on the loan? }\end{array} \)