Question

Using the values from the graph, compute the values for the terms given in the problem. Choose the correct answer. Age of car = 7 years. Original cost = $23,500. The cost of maintenance and repairs is $ .

Answer 1

Answer:

The cost of maintenance and repairs is $235

Step-by-step explanation:

step 1

Find the market values of car for age of car equal to 7 year

Observing the graph

The percentage of market value is 10%

so

10%=10/100=0.10

The market value is equal to

$23,500*0.10=$2,350

step 2

Find the cost of maintenance and repairs for age of car equal to 7 year

Observing the graph

The percentage of maintenance and repairs of car's value is 10%

so

10%=10/100=0.10

The cost of maintenance and repairs is

$2,350*0.10=$235

Answer 2

Answer:

$211.5

Step-by-step explanation:

Given information: Age of car = 7 years. Original cost = $23,500.

In the given graph it is clear that the solid line represents the percentage of market value of car and dashed line represents the maintenance and repair costs percentage of car's value.

From the given graph it is clear that, at age 7 year

Percentage of market value of car = 9%

Maintenance and repair costs percentage of car's value = 10%

At the age of 7 years, the value of car is 9% of original cost.

Value of car  = $\frac{9}{100}\times 23,500=2115$

The cost of maintenance and repairs is 10% of 2115.

The cost of maintenance and repairs = $\frac{10}{100}\times 2115=211.5$

Therefore, the cost of maintenance and repairs is $211.5.