onSami 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:OOa. $1,500 – $700(P/F,7.5%,3)b. $ 700 + 10% of $700c. $700 - $1,500 (F/P,7.5%,3)d. $1,500 (F/P,7.5%,3) - 800

Here, in this question we are given, Sami's initial investment(P) = $1500usage period(n) = 3…

Answered: Sami buys a used truck for $1,500.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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 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) - 800