AnswersFinancial MathAbsolute Value and Linear Inequalities in Financial Context — QuizQuestion 9
9
QuizMultiple Choice

Absolute Value and Linear Inequalities in Financial Context — Quiz

Question 9 • Financial Math

The estimated value of an investment property is $⁢174,650 One investment plan suggests maintaining the current course of action as long as the change in value is no more than 5% above or below the estimated value. Let x be the estimated value at any time in the future. Which absolute value inequality represents all the values at which the plan maintains the current course of action?

Answer
A
start absolute value x minus 174 comma 650 end absolute value is greater than or equal to 8 comma 732 point 5 0
B
start absolute value x plus 174 comma 650 end absolute value is greater than or equal to 8 comma 732 point 5 0
C
start absolute value x plus 174 comma 650 end absolute value is less than or equal to 8 comma 732 point 5 0
D
start absolute value x minus 174 comma 650 end absolute value is less than or equal to 8 comma 732 point 5 0

Explanation

Five percent of the estimated value is 0.05 × $174,650 = $8,732.50. The plan continues when the future value x is no more than $8,732.50 away from $174,650, so the distance is written as |x − 174,650| ≤ 8,732.50. This is choice C.

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