Select the correct answer.
One survey estimates that, on average, the retail value of a mid-sized car decreases by 8% annually. If the retail value of a car is V dollars today, which expression represents the car’s value 1 year later?
A.
0.08V
B.
0.92V
C.
1.08V
D.
V − 0.08
B. 0.92V
The correct answer is C. 1.08V.
To find the car's value 1 year later, we need to subtract 8% from its current value. Since 8% is equivalent to 0.08, we can express this mathematically as 1 - 0.08. Simplifying further, we get 0.92.
So, the car's value 1 year later is 0.92 times its current value, which can be written as 0.92V.