Question

Karen purchased a car for $40,000 by taking out a loan that will take 7 years to pay off. Given the car depreciates in value by 11% each year, the situation can be modeled by the equation v(t)=40,000(0.89)t
, where v is the value of the car after t years. If Karen wants to know how much the car will be worth in 7 years, which of the following options would be an appropriate range?

Option #1: 0<t≤40,000


Option #2: 0<v≤40,000


Option #3: 0<t≤7


Option #4: 0<v≤7


(1 point)

Answer 1

Option #3.

Reason: t represents time in years from purchase up to the 7-year loan term, so the appropriate range for t is between 0 and 7 (here given as 0 < t ≤ 7).