The value of Car B will become greater than the value of car A during the fifth year.
Step-by-step explanation:
Note: See the attached excel file for calculation of beginning and ending values of Cars A and B.
In the attached excel file, the following are used:
Annual Depreciation expense of Car A = Initial value of Car A * Depreciates rate of Car A = 30,000 * 20% = 6,000
Annual Depreciation expense of Car B from Year 1 to Year 6 = Initial value of Car B * Depreciates rate of Car B = 20,000 * 15% = 3,000
Annual Depreciation expense of Car B in Year 7 = Beginning value of Car B in Year 7 = 2,000
Conclusion
Since the 8,000 Beginning value of Car B in Year 5 is greater than the 6,000 Beginning value of Car A in Year 5, it therefore implies that the value Car B becomes greater than the value of car A during the fifth year.
If the 4th lies opposite the 11th, then you know the 3rd lies opposite the 10th, the 2nd opposite the 9th, and the 1st opposite the 8th; meanwhile, in the reverse direction you'd find that the 5th lies opposite the 12th, the 6th opposite the 13th, and the 7th opposite the 14th. Move up one more bead and you're back at the 1st, which you already know lies opposite the 8th. Therefore there are 14 total beads.
