Question

In addition to using its own capital reserves for the development, Pinecrest Enterprises must have access to a line of credit. Robert, the manager of the local bank, is concerned about Pinecrest’s existing debt. The total debt is $72 million. Joe, Pinecrest’s CEO, believes the company can reduce the existing debt by $2.5 million per month. Robert indicates that the company can receive additional credit if its debt has been reduced to between $37 million and $52 million.

What is the range for the number n of monthly payments that correspond to this target? When writing your answer as an inequality in the form a less or equal than n less or equal than b, what are the values of a and b?

Answer 1

Compound inequality:
a<2.5n<2.5<52.
37<2.5n<52
Divide by 2.5:
14.8M<n<20.8M.

Answer 2

Correction:
a<2.5n<b.
37<2.5n<52
Divide by 2.5:
14.8M<n<20.8M.

Answer 3

What is the value of a & b? I don’t understand.

Answer 4

37<2.5n<52.
14.8<n<20.8.

So the compound inequality states that the number of monthly payments(n) is greater than 14.8 but less than 20.8.

a = 14.8(15).
b = 20.8(21).