PSAT Math Multiple-Choice Question 323: Answer and Explanation

Question: 323

For a car, depreciation is a reduction in value due to use or age. The value of a new car starts to depreciate as soon as the car is purchased and driven for the first time. If the equation y = -0.15x + 27,000 represents the estimated value of a certain car, taking into account depreciation over time, what does 27,000 most likely represent?

• A. The depreciation rate
• B. The current value of the car
• C. The original purchase price of the car
• D. The value of the car after 0.15 years of ownership

Correct Answer: C

Explanation:

C

Difficulty: Easy

Category: Word Problems

Getting to the Answer: Because the car's value is always declining from the time it is purchased, its greatest value is its purchase price when new. The car's price at any time can be represented as the purchase price minus some value that depends on the car's age. In the given formula, 0.15x is subtracted from 27,000, suggesting that 0.15x represents the decline in value over time and 27,000 represents the car's original purchase price, choice (C).