Question

Joe has \(\$ 200\). If he buys a CD player for \(\$ 150,\) what is the greatest number of CDs he can buy with the remaining money if CDs cost \(\$ 12\) each?

Short answer

Joe can buy 4 CDs with the remaining money after buying the CD player.

Step-by-step solution

Calculate remaining money

Subtract the cost of the CD player from the initial amount of money. This can be done with the equation \(200 - 150 = 50\). So, Joe has \(\$50\) left after buying the CD player.

Calculate the number of CDs Joe can buy

Divide the remaining money by the cost of each CD to find out how many CDs Joe can buy. This can be done with the equation \(50 \div 12 = 4.16\). As you can only buy a whole number of CDs, Joe can buy 4 CDs with the remaining money, disregarding the remaining \(\$2\).

Key concepts

Problem Solving

Solving problems often involves breaking them down into smaller, more manageable parts. In Joe's case, we need to figure out how much money he has left after buying a CD player, and then determine how many CDs he can afford. To tackle such problems:

• Identify the information given: Joe has $200, a CD player costs $150, and each CD is $12.
• Determine what needs to be found: The number of CDs Joe can buy.
• Break the problem into steps: First, subtract the CD player's cost from the total money, then use division to find out how many CDs are affordable.

Methodically working through problems helps develop critical thinking and reasoning skills, enabling you to apply similar strategies to different situations.

Division

Division is a fundamental arithmetic operation used to split a quantity into equal parts. In this exercise, division helps us determine how many CDs Joe can buy with his remaining money. Here, we divide \(50 (the leftover money) by \)12 (the cost of each CD):

• Set up the division: \(50 \div 12 = 4.16\)
• Consider the whole number result: Since he can't buy a fraction of a CD, Joe can purchase 4 CDs.
• Understand the significance: The division remainder indicates leftover money, which in this case is $2.

Grasping division concepts allows you to find solutions in everyday financial and practical situations.

Subtraction

Subtraction is essential for determining how much money is left after a purchase. In Joe's scenario, we use subtraction to find out his remaining budget after buying the CD player. Here's the process:

• Write the subtraction equation: \(200 - 150 = 50\)
• Solve: Joe has $50 left after buying the CD player.
• Interpret: Subtraction helps identify how much more you can spend or save.

Understanding subtraction can aid in budgeting and managing finances effectively, by giving a clear sense of remaining resources.

Financial Literacy

Financial literacy involves understanding and effectively using financial principles. In this exercise, Joe's spending decisions demonstrate key financial literacy concepts:

• Budgeting: Joe must manage his $200 to cover different expenses.
• Prioritization: Buying the CD player first ensures he can afford it before considering other purchases.
• Decision-Making: Deciding how many CDs to buy teaches the importance of strategic financial planning.

Developing financial literacy skills helps in making informed decisions about spending and saving. It equips individuals to handle their finances wisely, making sure they get the best value within their budget constraints.