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SAT Math 1.2 Numbers and Operations
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SAT Math: Numbers and Operations Drill 1, Problem 2. If the masterpiece will be worth $45,055 in five years, what is its worth now?

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SAT Math 1.2 Numbers and Operations 219 Views


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Description:

SAT Math: Numbers and Operations Drill 1, Problem 2. If the masterpiece will be worth $45,055 in five years, what is its worth now?

Language:
English Language

Transcript

00:02

And here's your shmoop du jour...

00:04

The value of a rare work of art...

00:06

okay, it's your baby sister's finger painting, but the bidders don't need to know that...

00:10

is appreciating annually by about 15%.

00:14

If the... masterpiece... will be worth $45,055 in five years, what is its worth now?

00:21

Here are your potential answers...

00:25

We want to find how much this work of art is worth today.

00:29

To do that, we need the help of an equation.

00:31

The equation basically reads:

00:33

New cost equals original cost times one plus rate of appreciation raised to the number of years.

00:41

Replace those words with our numbers and you get:

00:44

$45,055 = V times the quantity 1 + 0.15 to the fifth power.

00:52

For our purposes, V represents the original cost of the work.

00:56

Now that we have our equation, all we have to do is solve for V.

01:01

Divide both sides of the equation by 1.15 to the fifth...

01:10

...to get that V equals around 22,400.

01:15

(D) is the correct answer.

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