The value of Persia’s car in dollars is y = 2500 x (0.5)x, where x is the time that has elapsed in years. Which of the following best describes the number 0.5?

Question

the choices are

A. The car loses about half of its value each year (The rate of depreciation).
B. The car gains about half of its value each year (The rate of appreciation).
C. The value of the car remains the same for the first five years as per the policy.
D. The car loses about 5% of its value every two years (The rate of depreciation).

Answer 1

This question refers to the rate of depreciation (the loss in value of a product) of the car.  This eliminates B or C.  So we would look at A or D.  It cannot be D, however, because the equation says (0.5x) such that x is the number of years.  Thus, it would need to be A, where it loses about half of its value each year.