An online store currently has $500 in cash. At the start of each month, the store receives revenues and pays bills. The revenues the store receives and bills the store must pay over the next two months are as follows:

 

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month 1 month 2 revenues $500 $4,000 bills $2,000 $1,500 As we can see, it is facing a deficit next month, and a surplus for the month after. At the start of each month, the store can borrow a certain amount to pay the bills on time, but at the end of the month it must pay back that amount with 1% interest. Furthermore, cash unused during the month earns 0.1% interest at the end of the month Let 71,72 be the amount of cash the store has at the start of months 1 and 2, respectively. Let y be the amount of cash at the end of month 2. Let 21, 22 be the amounts the store borrows at the start of months 1 and 2, respectively. Let w = (1, 2, 3, 21, 22). Write a system of linear equations Aw = b that describes the relationships between these variables. month 1 month 2 revenues $500 $4,000 bills $2,000 $1,500 As we can see, it is facing a deficit next month, and a surplus for the month after. At the start of each month, the store can borrow a certain amount to pay the bills on time, but at the end of the month it must pay back that amount with 1% interest. Furthermore, cash unused during the month earns 0.1% interest at the end of the month Let 71,72 be the amount of cash the store has at the start of months 1 and 2, respectively. Let y be the amount of cash at the end of month 2. Let 21, 22 be the amounts the store borrows at the start of months 1 and 2, respectively. Let w = (1, 2, 3, 21, 22). Write a system of linear equations Aw = b that describes the relationships between these variables.

Answer rating: 100% (QA)

For month 1 Starting cash 500 Revenues 2000 Bills to pay 500 Amount borrowed 21 Using the eq... View the full answer