Digital SATMath: Advanced MathMedium

A financial analyst is modeling the value of a stock, V(t), in dollars, after t months, using the function V(t) = -t^2 + 10t + 200. After how many months will the stock reach its maximum value?

  1. A5 months
  2. B20 months
  3. C10 months
  4. D3 months
Show answer & explanation

Correct answer: A. 5 months

The function is a downward-opening parabola, so its maximum value occurs at the vertex. For a quadratic function in the form ax^2 + bx + c, the x-coordinate of the vertex is given by -b/(2a). Here, a = -1 and b = 10, so t = -10/(2*(-1)) = -10/(-2) = 5.

Why the other options are wrong

  • B. This might be the result of a calculation error or misunderstanding the vertex formula.
  • C. This might be the result of incorrectly using -b/a or setting -t^2 + 10t = 0.
  • D. Incorrect calculation of the vertex x-coordinate.

Vertex of a Parabola

The highest or lowest point on the graph of a quadratic function, representing the maximum or minimum value of the function.

  • For f(x) = ax^2 + bx + c, the x-coordinate is -b/(2a).
  • If a > 0, the parabola opens upward, and the vertex is a minimum.
  • If a < 0, the parabola opens downward, and the vertex is a maximum.

Memory trick: Peak or pit, the vertex is it.

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