I think it “A law of demand”?
Answer:
C)$30,000
Explanation:
Since the assets will depreciate including the acquisition month, the depreciation will be calculated as $500x12= $6000 . So the Book Value will be $36000 -$6000 = $30000
To find the answer you will want to follow the rule of 70. The rule of 70 allows you to find the number of years it takes a variable to double.
In this situation, you would divide 70 by 3.5% (variable) giving you 20 years.
It would take approx. 20 years for the price level to double.