# Base number and interest

**Question description**

1) if you purchase an item for $100 with a10% discount and then pay a 10% tax it does not

equal a $100. Why do you ask? What is the base number that was used.

Ex: $100 minus 10% discount is $10 = $100-$10 or $90 but the tax is calculated off a base of 90 so 10% or $9. So final purchase is $90 + $9 or $99.

2) If you were 35 years old and you hope to retire at age 55 years old, which means you’ll

retire in 20 years, therefore assume you are about to set up a new retirement

savings account at a 4% annual interest rate (APR). Based on how you want to

live in retirement, and any other sources of retirement income you have

available, how much money do you think you will need to draw from your savings

account each year?

Write a contribution plan with a break down that you can follow in order

to finance your new retirement account to reach this savings goal

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