PSAT Math Multiple-Choice Practice Question 308
Question: 308
An automotive insurer computes the charge for an insurance policy by starting with a fixed fee for administrative expenses and then adding a percentage of the value of the car, v. If the total price for an automobile policy is given by the function T = 0.02v + 25, then the value 0.02 best represents which of the following?
Correct Answer: D
Explanation:
D
Difficulty: Easy
Getting to the Answer: The total insurance bill consists of a flat fee and a percentage of the value of the car. The administrative fee does not depend on the value of the car and therefore should not be multiplied by v. This means that 25 is the administrative fee. The other expression in the equation, 0.02v, represents the percentage of the value of the car times the car's value (which the question tells you is v). -Therefore, 0.02 must represent the value of the car as a percentage, which is (D).
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