Question

A teacher decides to purchase a new car and considers two options. Option one is the new Zoomba for $60,000 with an expected depreciation of 2% per month. Option two is the new Starfish for $40,000 with an expected depreciation of $200 per month. The teacher plans to keep the car for three years and chooses the option that is expected to retain the most value. Which option did the teacher choose (exponential or linear), and what was the value of the chosen option after three years? A) The teacher chose the linear option with an expected value of $32,800. B) The teacher chose the linear option with an expected value of $28,992.79. C) The teacher chose the exponential option with an expected value of $32,800. D) The teacher chose the exponential option with an expected value of $28,992.79.

Answer 1

Don’t now the answer but 60000 2% would be 1200 times 12 time 3 would be 43200$ for the 60k one and then 200 a month would be 7200 for three years that’s all I know