Solve the Problem $y = - \frac { 1 } { 3000 } x - 6900$

question 35

Multiple Choice

Solve the problem.

-The average value of a certain type of automobile was $15,900 in 1991 and depreciated to $6900 in 1994. Let y be the average value of the automobile in the year x, where x = 0 represents 1991.
Write a linear equation that models the value of the automobile (y) in terms of the year x.

• A) \(y = - \frac { 1 } { 3000 } x - 6900\)
• B) \(y = - 3000 x + 6900\)
• C) \(\mathrm { y } = - 3000 \mathrm { x } + 15,900\)
• D) \(y = - 3000 x - 2100\)

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Definitions:

Effective Annual Rate

The interest rate on an investment or loan that considers the effects of compounding over a one-year period.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, to be paid over a specified period.

Annuity Due

A type of annuity in which payments are made at the beginning of each period, rather than at the end.

Present Value

The current worth of a future sum of money or stream of cash flows, given a particular rate of discount.