DAT-Style Math Question
A car costs $42,000 and depreciates in value 8% annually.
How long would it take for the car to reach 55% of its original price?
A) 8 years and 2 days
B) 6 years and 20 days
C) 7 years and 73 days
D) 3 years and 37 days
E) 7 years and 37 days
Correct Answer: C
Use the exponential decay model:
0.55 × 42,000 = 42,000(1 − 0.08)ᵗ
Solving yields t ≈ 7.2 years, or 7 years and 73 days.
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