50. If John purchases a new car for $18,500 and, according to research, it straight line depreciates to zero value after 10 years, how much will his car be worth after 99 months? A. $0 B. $3,237.50 C. $186.87 D. $3,150.25
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50. If John purchases a new car for $18,500 and, according to research, it
straight line
worth after 99 months?
A. $0
B. $3,237.50
C. $186.87
D. $3,150.25
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- Khalid purchases a new truck for work! If he paid $63,703 for it and it depreciates in value by 50% in the first 7 years, the value of the truck after 7 years is $ (Remember that money is expressed to two decimal places). ?Q6: Solve this situation if P- 5000S, n-6 ycars, i-8%, Find A. Q7: Sami has purchased a new car. He would like to set aside enough money in a bank account to pay the gasoline for his car for the first 6 years. It has been estimated that the gasoline cost of the car is as follows: Year Gasoline Cost $400 500 3 600 4. 700 5 800 900 Assume the gasoline costs occur at the end of cach year and that the bank pays 7% interest. How much should the car owner deposit in the bank now? ( Q8: an asset is purchased for 100,000S. The estimated life is 7 years and the salvage value is 15000 S. Assuming the item is depreciated via straight line method. Find the book value of the asset at the end of 3 years. ( 3.1) If you buy a brand-new car for $21,500.00 that does not become a classic and depreciates 15% per year, what will it be worth in the following amount of years: 1 5 10 20 Will this car ever be "worthless" based on your formula? Approximately how many years will it take to be worth less than: $500 $100 $1
- s- ver Exercise 9.6.31. [A] You buy a car for $15,000 and for tax purposes you depreciate it at a rate of 11% per year. (a) At the end of 24 months, what is the value of the car? (b) At the end of 5 years, what is the value of the car? (c) Find the exponential equation that gives the value of the car after t years. Does the value of the car ever reach $0?on Sami buys a used truck for $1,500. After using it for 3 years, he expects to sell it for $800. If i = 7.5% per year, the future worth in dollars is: Select one: O O a. $1,500 – $700(P/F,7.5%,3) b. $ 700 + 10% of $700 c. $700 - $1,500 (F/P,7.5%,3) d. $1,500 (F/P,7.5%,3) - 8001.a. A renter would like to save $25,000 for a down payment for a house. She currently has saved $18,000. At what interest rate, compounded monthly, would she need to invest $18,000 in order to have $25,000 in 5 years? (Round the percent to two decimal places) b. A car with an initial value of $45,000 depreciates (loses value) exponentially. The value of the car after 2 years is estimated to be $36,225. Write an exponential function in the form y=C(b^t) to model the value of the car after tt years. What does your model predict the value of the car to be after 10 years? I think the answer is approximately $8,200 if the normal depreciation rate is 15.60%. Is that correct.
- 12. Marlon can purchase a company car for his real estate business for $30 000. Interest lost on the money used for the purchase is estimated at 6% per year, compounded quarterly. Alternatively, Marlon can lease the car for $4000 per year. a) Calculate the cost of keeping the car for five years, and then selling it for $12 000. Include the cost of lost interest on the money used for the purchase. b) Calculate the cost of leasing the car for five years. c) Which plan is a better deal for Marlon? How much more would he pay with the other plan?You have just sold your car for $50,000, but under the sales agreement, it won't receive the $50,000 until 5 years from today. What is the present value of $50,000 to be received 5 years from today if the discount rate is 7 percent annually? a. $35,445.94 b. $35,270.25 C. $50,000.00 d. $35,649.31 e. $32,500.00Reconstruction cost on your new home is $500,000. You decide to insure it for only what you paid for it - $375,000. 2 years later you have a $150,000 loss. How much will your insurance company pay? $125,600 O $140,625 $150,000 O $75,000
- Ellie’s car depreciates by 7% per year. the car is valued at $21000. what is the value after 4 years? using the straight line methodYour apartment was broken into and his two-year-old TV was taken. You had paid $800 for the TV,, but it will cost $1,200 to replace the unit. What is the actual cash value of the TV assuming it has a life expectancy of eight years? Ⓒ$900 $600 $200 $1,200 $300 5Your aunt has $270,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year, beginning immediately. She also wants to have $50,000 left to give you when she ceases to withdraw funds from the account. For how many years can she make the $45,000 withdrawals and still have $50,000 left in the end? a. 6.30 years b. 4.89 years c. 7.01 years d. 5.97 years e. 5.89 years
