To find the unit price you divide the total cost of the bag by the amount of pounds in the bag.
Thus, the unit price of Kitty Kibbles is 24/16, or 1.5. This means that each pound of Kitty Kibbles costs $1.50.
Also, the unit price of Feline Flavor is 11.20/8, or 1.4. This means that each pound of Feline Flavor costs $1.40
Feline Flavor is cheaper per pound than Kitty Kibbles (or Kitty Kibbles is more expensive than Feline Flavor per pound).
The effective annual interest rate calculations yield:
i = (1 + 0.064/12)^12 - 1 = 0.066
For year 1: the interest amounts to $613.80 (calculating $9300 multiplied by 0.066)
For year 2: the interest totals $654.31 (adding year 1’s interest to $9300 and multiplying by 0.066)
For year 3: the interest is $656.98 (following the same process as year 2)
For year 4: the interest is $657.16
The cumulative interest totals: $2582.25
The present value of this sum is:
P = 2582.23 / (1 + 0.066)^4 = $1999.72
Thus, the final answer is $1999.72.
