Question

After a serious automobile accident, most insurance companies will replace the damaged car with a new one if repair costs exceed 80% of the value of the car. An individual's car recently sustained $7200 worth of damage but was not replaced. What was the value of his car?

Answer 1

Solution

For this case we know that the company only pays if the cost exceed 80% of the value of the car, so we can create this inequality:

$7200\le0.8x$

And solving for x we got:

$x\ge\frac{7200}{0.8}$$x\ge9000$

Then the value needs to be higher than 9000$