The price of one share of stock in a company after x years may be modeled by the equation y = 200 - 8x . What is the best estimate of the price of one share of stock after 20 years?

Question

A.
$22.50

B.
$40.00

C.
$197.50

D.
$360.00

Answer 1

To estimate the price of one share of stock after 20 years using the equation \( y = 200 - 8x \), we need to substitute \( x = 20 \) into the equation:

\[ y = 200 - 8(20) \]

Calculating \( 8(20) \):

\[ 8(20) = 160 \]

Now substitute back into the equation:

\[ y = 200 - 160 \]

\[ y = 40 \]

Thus, the best estimate of the price of one share of stock after 20 years is $40.00.

The answer is B. $40.00.