I am reading Linear Algebra from David Lay's book. He gives one example to showcase use of linear combination of vectors :

I understand the solution, but I am completely clueless about how to intuitively think of using vectors in a problem like this ? I could find no indication that vector as a concept would be helpful in this case ? How am supposed to think of quantities like cost/voltage etc. as vectors ?
Randomly given these kind of problems, what hint should direct me to use vectors ?
Is my prior understanding of vectors in terms of Physics causing this problem ? (I still have that notion of quantity having a direction for it to be vector)
Well I think first of all you have to think about vectors as containers that hold data rather than thinking the physics kind of way. Vectors are used very often in computer architecture to carry values and use these values when the computer needs them.
Lets say you want to calculate the price of some groceries
you have apples
$3, oranges$5, bananas$2(each price is for one item). These are set prices. and you have a customer that purchased 5 apples 3 oranges and no bananas. you need to calculate the total price.so you have: 3$ * 5 + $5 * 3 + $2 * 0.
OR YOU COULD ARRANGE THEM IN VECTORS AND USE A SCALAR PRODUCT...
scalar product of 2 vectors lets say price = [3,5,2] and quantity = [5,3,0]
price.quantity =
$3*5 +$5*3 +$2* 0http://en.wikipedia.org/wiki/Dot_product