7
practice testMultiple Choice

Practice Test

Question 7 • Algebra II

Doug bought a new car for 25 dollars comma 000 He estimates his car will depreciate, or lose value, at a rate of 20 percent per year. The value of his car is modeled by the equation cap v is equal to cap p times open paren 1 minus r close paren to the t th power , where cap v is the value of the car, cap p is the price he paid, r is the annual rate of depreciation, and t is the number of years he has owned the car. According to the model, what will be the approximate value of his car after 4 and 1 half years?

Answer
A
9 dollars comma 159
B
23 dollars comma 791
C
2 dollars comma 500
D
22 dollars comma 827
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Doug bought a new car for 25 dollars comma 000…