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# 8.8: Problem-Solving Strategies

Difficulty Level: At Grade Created by: CK-12

We have to deal with problem solving in everyday life. Therefore, it is important to know the steps you must take when problem solving.

Example: Suppose $4000 is invested at a 6% interest rate compounded annually. How much money will there be in the bank at the end of five years? At the end of 20 years? Solution: Read the problem and summarize the information.$4000 is invested at a 6% interest rate compounded annually. We want to know how much money we have after five years.

• Assign variables. Let \begin{align*}x=\end{align*} time in years and \begin{align*}y=\end{align*} amount of money in investment account.
• We start with 4000 and each year we apply a 6% interest rate on the amount in the bank. • The pattern is that each year we multiply the previous amount by the factor of \begin{align*}100\%+6\%=106\%=1.06\end{align*}. • Complete a table of values. Time (years) 0 1 2 3 4 5 Investment Amount () 4000 4240 4494.40 4764.06 5049.91 5352.90

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Feb 22, 2012

Dec 11, 2014