Mathematics
Mathematics, 20.06.2020 11:57, christingle2004

A new American graduate is contemplating buying a Japanese, German, or an American car. No matter the type of car, he plans to buy a new one at the end of 8 years. Japanese car will cost $30,000 and have a fuel usage of 23 Miles Per gallon (mpg) for the first 2 years, and will decrease by 3% per year thereafter. Repair cost will start at $700 per year, and increase by 3% per year. At the end of year 8, the car can be sold for $5000. Insurance cost will be $700 for the first year, increasing by 2% per year thereafter. Page 2 of 3 Examiners: Dr. A. Afful-Dadzie, and Dr. A. Karimu A German car will cost $45,000 and have fuel usage of 21mpg for the first 5 years, and decrease by 1% thereafter to year 8. Repair cost will start at $1000 in year 1 and increase by 4% per year. It will have a salvage value of $7000 at the end of year 8. Insurance cost will be $850 the first year, increasing by 2% per year thereafter. The American car will cost $35,000 and have fuel usage of 20mpg for the first 3 years, and will decrease by 3% per year thereafter. Repair cost will be $800 in year 1, increasing by 4% per year thereafter. Being an American, the graduate will price the pride of owning an American car at $0.4 for every 20 miles driven, increasing by 2% per year. Insurance cost will be $800 per year increasing by 2.2% per year. The car can be sold for $5500 at the end of year 8. If the graduate anticipates driving 150000 miles by the end of year 8 and the average interest rate is expected to remain at 5% per year, which car is economically affordable based on present worth analysis? Assume fuel cost will be $3 per gallon in year 1 and increase by an average of 2% per year. Show all your workings. (20 marks)

answer
Answers: 1

Other questions on the subject: Mathematics

image
Mathematics, 21.06.2019 19:40, Candieboo4006
It appears that people who are mildly obese are less active than leaner people. one study looked at the average number of minutes per day that people spend standing or walking. among mildly obese people, the mean number of minutes of daily activity (standing or walking) is approximately normally distributed with mean 376 minutes and standard deviation 64 minutes. the mean number of minutes of daily activity for lean people is approximately normally distributed with mean 528 minutes and standard deviation 107 minutes. a researcher records the minutes of activity for an srs of 7 mildly obese people and an srs of 7 lean people. use z-scores rounded to two decimal places to answer the following: what is the probability (image for it appears that people who are mildly obese are less active than leaner people. one study looked at the averag0.0001) that the mean number of minutes of daily activity of the 6 mildly obese people exceeds 420 minutes? what is the probability (image for it appears that people who are mildly obese are less active than leaner people. one study looked at the averag0.0001) that the mean number of minutes of daily activity of the 6 lean people exceeds 420 minutes?
Answers: 1
image
Mathematics, 21.06.2019 19:50, mandy9386
Given that abcd is a rhombus, what is the value of x?
Answers: 3
image
Mathematics, 21.06.2019 20:00, sahaitong2552
Write each of the following numerals in base 10. for base twelve, t and e represent the face values ten and eleven, respectively. 114 base 5 89t base 12
Answers: 1
image
Mathematics, 21.06.2019 20:30, amandaaaa13
Asmall business produces and sells balls. the fixed costs are $20 and each ball costs $4.32 to produce. each ball sells for $8.32. write the equations for the total cost, c, and the revenue, r, then use the graphing method to determine how many balls must be sold to break even.
Answers: 1
Do you know the correct answer?
A new American graduate is contemplating buying a Japanese, German, or an American car. No matter th...

Questions in other subjects:

Konu
Mathematics, 26.03.2020 02:25