Absolute Value and Linear Inequalities in Financial Context — Quiz
Question 21 • Financial Math
An investor will change plans when the difference between a property's estimated value and its original appraised value is defined by the inequality |x−184,653|≥(0.22)(184,653) Based on the inequality, which statement is true?
Answer
A
x is the original purchase price of the property.
B
The plan changes only if the property's value increases to at least 225 dollars comma 276 point 6 6.
C
The property's current estimated value is 184 dollars comma 653.
D
The plan changes for values at least 40 dollars comma 623 point 6 6 above or below the original value.
Explanation
The inequality says the difference between the estimated value x and the original value $184,653 must be at least 22% of $184,653. Calculating 0.22 × 184,653 gives $40,623.66, so the plan changes when the value is at least $40,623.66 above or below the original value. Choice B states this correctly; the condition applies to decreases as well as increases.
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