Shanice bought the car for $28,430. The value of the car is predicted to depreciate to $13,590 after 5 years. 1. If Shanice keeps the car for an additional 3 years (8 years total), predict the value of the car at the end of those 3 additional years, assuming the value continues decreasing exponentially at the same rate? $ 2. The average maintenance costs on the car are expected to be $350 the year it is purchased and increase by $50 each year after that. Use this to predict the total maintenance costs during the 3 years after the loan is paid off.
Shanice bought the car for $28,430. The value of the car is predicted to depreciate to $13,590 after 5 years. 1. If Shanice keeps the car for an additional 3 years (8 years total), predict the value of the car at the end of those 3 additional years, assuming the value continues decreasing exponentially at the same rate? $ 2. The average maintenance costs on the car are expected to be $350 the year it is purchased and increase by $50 each year after that. Use this to predict the total maintenance costs during the 3 years after the loan is paid off.
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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Shanice bought the car for $28,430. The value of the car is predicted to
1. If Shanice keeps the car for an additional 3 years (8 years total), predict the value of the car at the end of those 3 additional years, assuming the value continues decreasing exponentially at the same rate?
$
2. The average maintenance costs on the car are expected to be $350 the year it is purchased and increase by $50 each year after that. Use this to predict the total maintenance costs during the 3 years after the loan is paid off.
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