Q2. The value of a car declines exponentially at 7.5% per year. Find the original value of the car if its value when it was 4 years old was OMR 7408.
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- 1. You bought a new car for $42000. Assume the value of the car depreciates by 17% each year. complete the table Age of the Car in years Calculation Value 0 N/A 42000 1 42000*0.83 2 3 4 ... N/A N/A 10 b. Use the table to find a pattern and develop a formula to model the V= value of the car, after n years. c. linear or not linear?1. You bought an investment for $15,000 in 2000 and sold it for $26,000 in 2014. What was the annual price appreciation of this investment? 2. You want to buy a new car. You are able to save $5,000 per year in an investment account, and your account is growing at 8% annually. How long will it take you to accumulate $30,000 to make this purchase?The value of a car that is t years old can be modeled by V(t)= 420,000(0.965)^t .what would be the car's worth in 2 years time? How many years will the car be worth $325,000?
- 1.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.A small business purchased now for P50, 000 will lose P9, 600 each year for first 4 years. An additional investment of P30,000 in the business will required at the end of the fourth year. After 15 years the business can sold for P70, 000. What should be the profit each year from the fifth through the fifteenth year to obtain a rate return of 25%? Ans. P55.083You decide to purchase a brand new car for $35,000. You trade it in 9 years later for $9,000. Assuming the car's valuedepreciates linearly, when was it worth $19,000 ? (Round answer to tenth of a year)
- For the past 4 years, real estate prices in one area of the country have been increasing at an exponential rate of 4.5 percent per year. A home was purchased 4 years ago for $125,000. (a) What is it estimated value today? (b) Assuming appreciation continues at the same rate, what will its value be 5 years from today?9. A mini-mart needs a new freezer and the initial investment will cost $461,558. Incremental revenues, including cost savings, are $128,876, and incremental expenses, including depreciation, are $39,076. There is no salvage value. What is the accounting rate of return (ARR)? Round the nearest whole percent, no decimal places. 10. You put $250 in the bank for 5 years at 12%. If interest is added at the end of the year, complete the chart and input the balances at the end of each year. Round to the nearest penny, two places. Data table Year Money in the Bank 1 $ 2 3 4 59) The maintenance cost of a car are is approximately $400 per year.With age the cost increase by $100 a year.What is the future worth of the maintenance cost in five year's time if the interest rate is 5% compounded annually?
- 11. You buy a new piece of equipment for $11,778, and you receive a cash inflow of $2,000 per year for 10 years. What is the internal rate of return?Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?The average price of a new home is $520,000.If new home prices are increasing at a rate of 10%per year, how much will a new home cost in 6 years?3.10 What will be the amount accumulated by eachof these present investments?(a) $4,000 in 6 years at 7% compounded annually.(b) $6,750 in 15 years at 9% compounded annually.(c) $10,500 in 25 years at 6% compounded annually.(d) $15,000 in 8 years at 7.5% compounded annually.
