Multiple choice

In 1989, the price of a new model S car was \$x. If the price of the model S car decreased each year by 10 percent of the previous year's price and amounted to \$16,200 in two years, then what would be the value of 'x'?

  1. 18,200

  2. 12,000

  3. 20,000

  4. 12,500

  5. 25,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The price decreases by 10% annually, so the price after 2 years is x * (0.9)^2 = 16,200. Thus, x * 0.81 = 16,200, which gives x = 16,200 / 0.81 = 20,000.

AI explanation

The price decreases by 10% each year, meaning the price becomes 90% of the previous year's price, or 0.9 times the previous amount. After two years, the value is x * 0.9 * 0.9 = 0.81x. Setting this equal to the final amount gives 0.81x = 16200, so x = 16200 / 0.81 = 20000.

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