1. Is PS3 better than X-BOX 360?
a. Assume the initial price for the PS3 is $300 and the initial price for the X-BOX 360 is $200
(this was true about a year ago). The PS3’s yearly online subscription is free, but X-BOX’s
online service (X-BOX Live) costs $50 per year. How long do you need to own a system
before the cost is the same?
2. During Spring Training the Oakland A’s are playing at the same time as the Anaheim Angels, and
the ballparks are right next to each other (this is true, by the way). You want to eat at the
ballpark, but you need to save as much money as you can because you’re still paying off your
car. The A’s charge $24 to enter the park, but each food item costs $2. The Angels let you in the
park for $12, but each food item costs $4. How many hot dogs do you need to buy before the
prices are equal? Which ballpark has the best value? Explain why you think this is true.
3. College costs an average of $80,000 for a four-year program, but the income for someone after
graduating from college is an average of $40,000 per year. With just a high school education, the
average income afterward is $20,000 per year. How long do you need to work afterward until
the costs are equal?
This last one is a tough one, but you can do it based on what you already know.
4. A David Bowie had a concert in Tucson that had a paid attendance of 14,400 people (because it
was in the McKale Center at U of A). Balcony tickets cost $100 and lower-level tickets cost $400.
Ticket sales receipts totaled $1,999,800. How many tickets of each type were sold?