A Large Printing Press Sells for $225,000 When It Is

question 122

Multiple Choice

A large printing press sells for $225,000 when it is new. After that, its value decreases 25% each year. Write a geometric sequence that gives the value of the press at the end of each of the first 5 years after it is purchased. What is the common ratio r for this sequence? Construct a line graph for this sequence.

• A) $146,250.00, $95,062.50, $61,790.63, $40,163.91, $26,106.54; r = 0.75.
• B) $168,750.00, $126,562.50, $94,921.88, $71,191.41, $53,393.55; r = 0.75.
• C) $128,017.50, $83,211.38, $54,087.39, $35,156.81, $22,851.92; r = 0.65.
• D) $150,500.00, $105,350.00, $73,745.00, $51,621.50, $36,135.05; r = 0.7.
• E) $157,500.00, $110,250.00, $77,175.00, $54,022.50, $37,815.75; r = 0.7.

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Definitions:

Density Function

In probability and statistics, a mathematical function that describes the probability distribution of continuous random variables, indicating the likelihood of different outcomes.

Legitimate

Valid or acceptable according to law or established rules, often used to describe something that is recognized as genuine or correct.

Uniform Distribution

A statistical distribution where all outcomes are equally likely over a specified range.

Random Variable

A numeric variable influenced by the randomness of certain phenomena.