Math Problem Statement

The manager of an 80-unit apartment complex knows from experience that at a rent of $300, all the units will be full. On the average, one additional unit will remain vacant for each $20 increase in rent over $300. Furthermore, the manager must keep at least 30 units rented due to other financial considerations. (a) Suppose that x represents the number of $20 increases over $300. Represent the number of apartment units that will be rented in terms of x . (b) Represent the rent per unit in terms of x . (c) Use the answers in part (a) and (b) to write an equation that defines the revenue generated when there are x increases of $20 over $300. (d) The revenue currently generated is $35,000. How many apartment units are rented?

Solution

We will go through each part of the problem step by step:

Part (a) - Number of Apartment Units Rented in Terms of xx:

Let xx represent the number of $20 increases over the initial $300 rent.

  • At $300 rent, all 80 units are rented.
  • For each $20 increase in rent, one additional unit will become vacant.

Thus, the number of units rented as a function of xx is: Units rented=80x\text{Units rented} = 80 - x

Part (b) - Rent per Unit in Terms of xx:

The rent starts at $300, and for each increase of xx, the rent rises by $20.

So the rent per unit in terms of xx is: Rent per unit=300+20x\text{Rent per unit} = 300 + 20x

Part (c) - Revenue as a Function of xx:

Revenue is calculated as: Revenue=(Number of units rented)×(Rent per unit)\text{Revenue} = \text{(Number of units rented)} \times \text{(Rent per unit)}

Substituting the expressions from part (a) and part (b):

Revenue=(80x)×(300+20x)\text{Revenue} = (80 - x) \times (300 + 20x)

Now, expanding this expression:

Revenue=80(300+20x)x(300+20x)\text{Revenue} = 80(300 + 20x) - x(300 + 20x) Revenue=80(300)+80(20x)x(300)x(20x)\text{Revenue} = 80(300) + 80(20x) - x(300) - x(20x) Revenue=24000+1600x300x20x2\text{Revenue} = 24000 + 1600x - 300x - 20x^2 Revenue=24000+1300x20x2\text{Revenue} = 24000 + 1300x - 20x^2

So the revenue as a function of xx is: R(x)=24000+1300x20x2R(x) = 24000 + 1300x - 20x^2

Part (d) - Finding How Many Units Are Rented When Revenue is $35,000:

We are given that the revenue is $35,000. So, we set R(x)=35000R(x) = 35000 and solve for xx:

24000+1300x20x2=3500024000 + 1300x - 20x^2 = 35000 Subtract 35000 from both sides: 24000+1300x20x235000=024000 + 1300x - 20x^2 - 35000 = 0 11000+1300x20x2=0-11000 + 1300x - 20x^2 = 0 Multiply the equation by -1 to simplify: 110001300x+20x2=011000 - 1300x + 20x^2 = 0 Rearranging it in standard quadratic form: 20x21300x+11000=020x^2 - 1300x + 11000 = 0

Now, solve this quadratic equation using the quadratic formula: x=(1300)±(1300)24(20)(11000)2(20)x = \frac{-(-1300) \pm \sqrt{(-1300)^2 - 4(20)(11000)}}{2(20)} x=1300±169000088000040x = \frac{1300 \pm \sqrt{1690000 - 880000}}{40} x=1300±81000040x = \frac{1300 \pm \sqrt{810000}}{40} x=1300±90040x = \frac{1300 \pm 900}{40}

Now, compute the two possible values for xx:

  1. x=1300+90040=220040=55x = \frac{1300 + 900}{40} = \frac{2200}{40} = 55
  2. x=130090040=40040=10x = \frac{1300 - 900}{40} = \frac{400}{40} = 10

Since the manager must keep at least 30 units rented, and the number of units rented is 80x80 - x, we can only accept x=10x = 10 because 8055=2580 - 55 = 25 units is below the required 30 units. Thus, x=10x = 10 is the valid solution.

Now, the number of units rented when x=10x = 10 is: 8010=70 units80 - 10 = 70 \text{ units}

Final Answer:

When the revenue is $35,000, 70 units are rented.


Would you like more details on any part? Here are some related questions:

  1. What is the maximum revenue the manager can generate?
  2. How would the equation change if rent increased by $30 instead of $20?
  3. How many units are rented when the rent is $400?
  4. How does the vacancy rate change as rent increases?
  5. Can you graph the revenue function to visualize the relationship between rent and units?

Tip: Always check that your solutions satisfy all problem constraints, such as minimum or maximum values.

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Equations
Revenue Optimization

Formulas

Units rented = 80 - x
Rent per unit = 300 + 20x
Revenue = (Number of units rented) × (Rent per unit)
Quadratic equation formula: ax^2 + bx + c = 0

Theorems

Quadratic Formula

Suitable Grade Level

Grades 9-12