Can somebody complete the workout on part (c)? (c) Equating the values in (a) and (b) to find the time when Steven can buy the car:To find the time when Steven can buy the car, we equate the values of V(t) and S(t) and solve for t:V(t) = S(t)(Ae^(kt) + $55,000) = (Be^(pt) + $9,000) Question 2Steven has struck a deal with his dad to buy his car when he can afford to.The car is valued at $55 000 today but depreciates at a continuously compounding rate of1% per month (i.e. 1 — d = e−0.01).Steven has $9 000 in a bank account and plans to add $120 each month end. The bankpays interest at a continuously compounding rate of 1% per month (i.e. 1 + r = 0.0¹).(a) Formulate the value of the car as a finite difference equation and solve by calculatingthe Complementary Function and Particular Solution.(b) Formulate Steven's Savings amount in a similar way and solve.(c) Solve to equate the values in (a) and (b) to find the time when Steven can buy thecar.

Current value of Car = 55000 Depreciation per month = 1% Steven's bank current balance =…

Steven has struck a deal with his dad to buy his car when he can afford to. The car is valued at $55 000 today but depreciates at a continuously compounding rate of 1% per month (i.e. 1 — d = e¯0.0¹). -

Steven has struck a deal with his dad to buy his car when he can afford to. The car is valued at $55 000 today but depreciates at a continuously compounding rate of 1% per month (i.e. 1 — d = e¯0.0¹). -

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: This does not solve for the Present Worth of Costs

A: Two design alternatives: 1) Steel Girder 2) Concrete Girder Initial cost of Steel Girder = $2.25…

Q: major league baseball plans to sell special commemorative jerseys for the world series. the…

A: C(x)= 10x2-680x-20,000 MLB plans to sell them for 120 dollars each

Q: Define the term engineering economic decisions?

A: Engineering economics is the Application of economic principle in the analysis of decision making in…

Q: READ all instructions carefully before you begin. Label your page/ document with: PART 1.…

A: Here are the graphs depicting externalities, each accurately drawn and annotated as per the…

Q: Construct the cost schedule

A: Cost schedule refers to the table that shows the total cost of production at different levels of…

Q: hy is it important for managers to avoid confusing incremental costs with average costs?

A: Incremental Cost :- The incremental cost represents the cumulative amount of money spent on an extra…

Q: Why are the economic engineers required to consider whether a company should buy equipment to…

A: For a firm, one of the decisions that it needs to take at some points is whether a company should…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: art-of-the-start-guy-kawasaki.pdf (wordpress.com)

A: Kawasaki argues that it is better to start with a small, focused product or service that you can…

Q: What are the Non-manufacturing Costs?

A: The cost incurred outside the factory or department of production is known as the non-manufacturing…

Q: If TVC is $1000 and output is 20 units Calculate AVC

A: The information being given is:- Total variable cost = $1000 Output = 20 units We need to calculate…

Q: My friend’s aunt used to drive a Lincoln/Mercury Capri. It cost $2,999 in 1973. This sounds…

A: The consumer price index in the year 1973 was 44.4. The latest CPI that is CPI in year 2020…

Q: How can the calculation of the Unit-Cost be done?

A: Fixed cost refers to those costs that remain the same regardless of the level of production.…

Q: PLS HELP ASAP ON BOTH

A: 2. The correct answer is c) bevel gauge.A bevel gauge is a tool used to measure and transfer angles,…

Q: Don't use chatgpt, I will 5 upvotes What is the total cost of two units?…

A: Since, AFC of 2 Units = 120 (Given)We can find, Fixed Cost (FC) = 2 *120 = 240Now, It is given that…

Q: sarah earns 400 per week and spends 15% of her earning on tranpotation every week

A: Given:- Earning per week= 400 Spend on transportation = 15%

Q: and hot cider for leunch and Spert a tetel of $10.25 the Sandwich Goer. Uhet wes the costef each…

A: Natalie bought a sandwich and a hot cider for lunch. Let the number of sandwich be x and price she…

Q: How can we determine the Cost Basis?

A: Calculation of the cost basis of an investment shows the capital gain or loss on it. It indicates…

Q: how did you get the 6.25 labor units

A: Profit is the reward for bearing risk. Profit is the excess of total revenue over total cost. So ,…

Q: Sheryl's preferences for consumption and leisure can be expressed as U(C, L) = (C – 100) × (L– 40).…

A: We are given the following information- Sheryl's preference for consumption and leisure is expressed…

Q: A United States based Airline bought an airplane from a German Manufacturer for $1 Million.…

A: Consumption (C): This includes the spending by households on goods and services. In this scenario,…

Q: Question 39 Use the values in the table below to answer the following questions. Q TC ATC MC 3 20.48…

A: Total cost refers to the sum of all expenses incurred by a company in producing goods or providing…

Q: Calculate profits if total revenue is $6500 and the total cost is $2300

A: Answer: Given, Total revenue = $6500 Total cost = $2300 Profit = Total revenue - Total cost Profit =…

Q: PLS HELP ASAP ON BOTH

A: Participating preferred shares are a type of preferred stock that comes with the benefit of allowing…

Question

Can somebody complete the workout on part (c)?

(c) Equating the values in (a) and (b) to find the time when Steven can buy the car:
To find the time when Steven can buy the car, we equate the values of V(t) and S(t) and solve for t:
V(t) = S(t)
(Ae^(kt) + $55,000) = (Be^(pt) + $9,000)

Question 2
Steven has struck a deal with his dad to buy his car when he can afford to.
The car is valued at $55 000 today but depreciates at a continuously compounding rate of
1% per month (i.e. 1 — d = e−0.01).
Steven has $9 000 in a bank account and plans to add $120 each month end. The bank
pays interest at a continuously compounding rate of 1% per month (i.e. 1 + r = 0.0¹).
(a) Formulate the value of the car as a finite difference equation and solve by calculating
the Complementary Function and Particular Solution.
(b) Formulate Steven's Savings amount in a similar way and solve.
(c) Solve to equate the values in (a) and (b) to find the time when Steven can buy the
car.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Determine the given information

VIEW

Step 2: Derive the time in which Steven can buy the car

VIEW

Solution

VIEW

Step by step

Solved in 3 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

where did 118.8 come from?

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

How do the Modified Accelerated Cost Recovery System (MACRS) givetaxpayers a break?
How can we Evaluate a Single Project?
how much if a barrel of oil does costs Chevron to produce for sale in the crude oil market, without refining costs. Show actual refernece if already calculated or show calculation to get the number.
It costs a baker a fixed cost of $420 and variable cost of $2.10 per cupcake.A cupcake is sold for $4.90 each. (i) Make a table showing the cost of producing 20,40,60,80 and 100 cupcakes.
Calculate the value of total revenue if total cost is $6500 and profits are $800
A process has a cycle time of 10 minutes. The throughput time is 10 hours. If the throughput time is reduced to 5 hours without changing the cycle time, what is the change in inventory (as a percentage)?
Identify a minimum of 5 features/tools that are offered.
How do you figure out opertunity cost?
Define the term Routine Annual Maintenance Costs?
Ima New is a recent employee who initially requires 20 minutes to complete a job task. If she experiences an 80% learning rate, how much time will it take her to complete the sixth task?
Can you help with the three questions on my worksheet that relate to the attached graph? Can you also advise if I have done my math correctly?
How did you get the productivity of the new unit. What formula is used?