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Talan has a gift card for $165 that loses $4 every 30-day period it is not used. He has another gift card for $145 that loses $3.50 for each 30-day period it is not used.

Respuesta :

Assuming that the gift cards have equal value the value of each will be is:$5, $5.

Value of each card

Gift Card 1 (C=GC1) has a value of $165 - Time×(-$4/30 days)

Lets set T for a time increment of 30 days

1 T = 30 days

Value of GC1, in increments of 30 days=GC1 = 165 - T×($4/30days)

Gift Card 2=GC2 = 145 - T×($3.50/30days)

Let find the  value of T when the cards are equal in value

165-T×4 = 145 - T×3.50

where T= increments of 30 days

Re-arrange

=165-145=4-3.50

=20 = 0.5T

Divide both side by 0.5T

T-20/0.5

T = 40 days

Hence:

Value of each card

Card 1 after 40 periods=$165 - (40×$4)

Card 1 after 40 periods=$165-$160

Card 1 after 40 periods=$5

Card 2 after 40 periods= $145 - (40×3.5)

Card 2 after 40 periods = $5

Therefore assuming that the gift cards have equal value the value of each will be is:$5, $5.

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