A car depreciates at a rate of 30% per year., №18011199, 19.09.2020 01:10

Mathematics

A car depreciates at a rate of 30% per year. How much will a $20 000 car be worth after five years? (3 marks)

Step-by-step answer

P Answered by Specialist

$\qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{current amount}\\ P=\textit{initial amount}\dotfill &20000\\ r=rate\to 30\%\to \frac{30}{100}\dotfill &0.3\\ t=\textit{elapsed time}\dotfill &5\\ \end{cases} \\\\\\ A=20000(1 - 0.3)^{5}\implies A=20000(0.7)^5\implies A=3361.4$

Business

Net worth is equal to assets minus liabilities. which event will have the greatest impact (positive or negative) on one s net worth? finance a used car at market value for $16,000 inherit $2,000 from a relative buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership. pay off $4,000 of school loans with cash go on a vacation that costs $1,500 3. assume a home buyer puts 20% down on a $200,000 house and uses a mortgage to borrow the rest. what will the amount of the mortgage be (excluding any closing costs)? $200,000

Step-by-step answer

P Answered by PhD

2. Buy a new car at market value for $15,000. Car depreciates 20% upon transfer of ownership.

When the car depreciate 20% upon transfer of ownerships, the value of asset that we received became:

$15,000 x 80% = $ 12,000.

Since we have to pay $15,000 in cash, we experienced a reduction of $3,000 in our net worth.

- Finance a used car at market value for $16,000.

No net worth changed since we spent $16,000 worth of asset (cash) in order to get $16,000 worth of asset (car)

- Pay off $4,000 of school loans with cash

No net worth changed. Reduction of $4,000 in liabilities, but our asset is also reduced by $ 4,000

- Go on a vacation that costs $1,500

Reduction of $1,500 from out net worth since we do not obtain any asset in return.

3. $160,000

The formula to count the amount of the mortgage = (price of the house - down payment).

Price of the house: $ 200,000

Down payment : $200,000 x 20% = $ 40,000

This mean, the amount of the mortgage would be:

$200,000 - $ 40,000 = $ 160,000

4. Lower, Increase

Variable interest rate can be changed depending the economic condition or a financial factors such as consumer price index.

This mean that from the moment the loan is made, the interest rate could either go higher or lower depending on the market performance. Because of the risk that the borrower had to face, this type of interest rate tend to be cheaper.

5. Lower, Higher

As the duration of loan got higher, the interest rate for that loan would also increase to cover the risk of creditor.

So, if we compare a 30 years loan and a 15 years loan, the payment for the 30 years loan would be lower since it would divided by 30 rather than 15.

But, since shorter loan has lower interest, if we count the total amount that you should pay for 30 years loan would be higher compared to 15 years loan.

6. Negative $1,500

Net worth is counted by counting total assets - total liabilities.

Megan's asset :

- $ 500 short term saving

- $5,000 retirement saving

Total asset : $ 5,000 + $ 5,00 = $ 5,500

Megan's liabiltiies:

- $ 500 credit card debt

- $ 6,500 student loan debt

Total liabilities : $ 6,500 + $ 500 = $ 7,000

Megan's net worth = $ 5,500 - $ 7,000 = Negative $1,500

Business

Net worth is equal to assets minus liabilities. which event will have the greatest impact (positive or negative) on one s net worth? finance a used car at market value for $16,000 inherit $2,000 from a relative buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership. pay off $4,000 of school loans with cash go on a vacation that costs $1,500 3. assume a home buyer puts 20% down on a $200,000 house and uses a mortgage to borrow the rest. what will the amount of the mortgage be (excluding any closing costs)? $200,000

Step-by-step answer

P Answered by PhD

2. Buy a new car at market value for $15,000. Car depreciates 20% upon transfer of ownership.

When the car depreciate 20% upon transfer of ownerships, the value of asset that we received became:

$15,000 x 80% = $ 12,000.

Since we have to pay $15,000 in cash, we experienced a reduction of $3,000 in our net worth.

- Finance a used car at market value for $16,000.

No net worth changed since we spent $16,000 worth of asset (cash) in order to get $16,000 worth of asset (car)

- Pay off $4,000 of school loans with cash

No net worth changed. Reduction of $4,000 in liabilities, but our asset is also reduced by $ 4,000

- Go on a vacation that costs $1,500

Reduction of $1,500 from out net worth since we do not obtain any asset in return.

3. $160,000

The formula to count the amount of the mortgage = (price of the house - down payment).

Price of the house: $ 200,000

Down payment : $200,000 x 20% = $ 40,000

This mean, the amount of the mortgage would be:

$200,000 - $ 40,000 = $ 160,000

4. Lower, Increase

Variable interest rate can be changed depending the economic condition or a financial factors such as consumer price index.

This mean that from the moment the loan is made, the interest rate could either go higher or lower depending on the market performance. Because of the risk that the borrower had to face, this type of interest rate tend to be cheaper.

5. Lower, Higher

As the duration of loan got higher, the interest rate for that loan would also increase to cover the risk of creditor.

So, if we compare a 30 years loan and a 15 years loan, the payment for the 30 years loan would be lower since it would divided by 30 rather than 15.

But, since shorter loan has lower interest, if we count the total amount that you should pay for 30 years loan would be higher compared to 15 years loan.

6. Negative $1,500

Net worth is counted by counting total assets - total liabilities.

Megan's asset :

- $ 500 short term saving

- $5,000 retirement saving

Total asset : $ 5,000 + $ 5,00 = $ 5,500

Megan's liabiltiies:

- $ 500 credit card debt

- $ 6,500 student loan debt

Total liabilities : $ 6,500 + $ 500 = $ 7,000

Megan's net worth = $ 5,500 - $ 7,000 = Negative $1,500

Business

Lomani Ltd acquired two new machines for cash on 1 January 2017. The cost of machine A was $400 000, plus GST, and of machine B, $600 000, plus GST. Each machine was expected to have a useful life of 10 years, and residual values were estimated at $20 000 for machine A and $50 000 for machine B. Because of technological advances, Lomani Ltd decided to replace machine A. It traded in machine A on 31 March 2021 for a new machine, C, which cost $420 000. A $200 000, plus GST, trade-in was allowed for machine A, and the balance of machine C’s cost

Step-by-step answer

P Answered by PhD

2017

Machine A (Dr.) $400,000

Machine B (Dr.) $600,000

Cash (Cr.) $1,000,000

2018

Depreciation Expense (Dr.) $93,000

Accumulated Depreciation (Cr.) $93,000

2019

Depreciation Expense (Dr.) $93,000

Accumulated Depreciation (Cr.) $186,000

2020

Depreciation Expense (Dr.) $93,000

Accumulated Depreciation (Cr.) $279,000

2021

Machine C (Dr.) $420,000

Machine A (Cr.) $200,000

Cash (Cr.) $220,000

(To record trade in of machine A)

Repairs expense Machine B (Dr.) $66,000

Cash (Cr.) $66,000

(To record repairs of machine B)

2022

Depreciation Expense (Dr.) $79,450

Accumulated Depreciation (Cr.) $358,450

2023

Cash (Dr.) $300,000

Machine B (Cr.) $284,550

Gain on selling (Cr.) $15,450

Explanation:

Straight line depreciation recognize an assets carrying amount evenly over its useful life.

Straight line Depreciation = (Cost - Estimated Residual Value) / useful life

Depreciation expense for Machine A:

($400,000 - $20,000) / 10 years

= $38,000

Depreciation expense for Machine B:

($600,000 - $50,000) / 10 years

= $55,000

Depreciation expense for Machine C:

($420,000 - $20,000) / 8 years

= $50,000

Revised Depreciation of Machine B:

($314,000 - $19,500) / 10 years

= $29,450

Mathematics

With financial lit--will mark branliest-- 1. net worth is equal to assets minus liabilities. which event will have the greatest impact (positive or negative) on one s net worth? pay off $4,000 of school loans with cash finance a used car at market value for $16,000 buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership from the dealer to the buyer. go on a vacation that costs $3,500 inherit $2,000 from a relative 2. subprime lending rates are 1) than prime lending rates and are commonly offered to people with

Step-by-step answer

P Answered by PhD

6

1. Go on a vacation that costs $3,500
Paying off money for buying a car will not decrease your net worth as you get the car as assets for the money you use. But the depreciates 20% will cause you to lose $3,000 assets. Assuming you are not buying assets at all, go on a vacation that costs $3,500 will increase liability without any effect on assets. Paying up bills will decrease your asset but it also decreases your liability so the net worth wouldn't change.

2. 1) higher 2) lower
Subprime lending is lending money to people with a low credit score that was not really fit for the credit. This means the risk of getting the money back would be higher than prime lending. Since the risk of losing the money is higher, the interest should be higher than prime lending.

3. $200,000
The house price is $250k and the buyer put 20% down which is; 20%*$250k= $50k
Then the rest of the money that needs to be paid by the mortgage would be: $250k-$50k=$200k

4. Lower, Increase
In variable rate loans, the interest will be adjusted by the market. That means the rates will be unpredictable since it was based on the condition of the market. It will be safer for the creditor since he/she will absolutely get the revenue no matter how the market goes. This change is a bit dangerous for the borrower because the number of rates can increase dramatically.

5. Higher, lower
When you pay 30 years mortgage, the total loan is divided by 30 years which was 2 times more than 15 years. Excluding the rates, you can estimate that the 15 years mortgage payment will be twice than 30years mortgage. The total cost would also be lower since the interest rate is applied for 15 years, about half than 30 years.

6. Negative $3,500
Net worth is assets minus liability.
The list of the assets would be:
$500 in short-term savings
$5,000 in her retirement savings account
Total assets= $500+$5,000= $5,500

The list of liability would be:
$1,500 in credit card debt
student loan debt of $7,500

Total liability= $1,500+ $7,500= $9,000Net worth= $5,500- $9,000= - $3,500

Business

Lomani Ltd acquired two new machines for cash on 1 January 2017. The cost of machine A was $400 000, plus GST, and of machine B, $600 000, plus GST. Each machine was expected to have a useful life of 10 years, and residual values were estimated at $20 000 for machine A and $50 000 for machine B. Because of technological advances, Lomani Ltd decided to replace machine A. It traded in machine A on 31 March 2021 for a new machine, C, which cost $420 000. A $200 000, plus GST, trade-in was allowed for machine A, and the balance of machine C’s cost

Step-by-step answer

P Answered by PhD

2017

Machine A (Dr.) $400,000

Machine B (Dr.) $600,000

Cash (Cr.) $1,000,000

2018

Depreciation Expense (Dr.) $93,000

Accumulated Depreciation (Cr.) $93,000

2019

Depreciation Expense (Dr.) $93,000

Accumulated Depreciation (Cr.) $186,000

2020

Depreciation Expense (Dr.) $93,000

Accumulated Depreciation (Cr.) $279,000

2021

Machine C (Dr.) $420,000

Machine A (Cr.) $200,000

Cash (Cr.) $220,000

(To record trade in of machine A)

Repairs expense Machine B (Dr.) $66,000

Cash (Cr.) $66,000

(To record repairs of machine B)

2022

Depreciation Expense (Dr.) $79,450

Accumulated Depreciation (Cr.) $358,450

2023

Cash (Dr.) $300,000

Machine B (Cr.) $284,550

Gain on selling (Cr.) $15,450

Explanation:

Straight line depreciation recognize an assets carrying amount evenly over its useful life.

Straight line Depreciation = (Cost - Estimated Residual Value) / useful life

Depreciation expense for Machine A:

($400,000 - $20,000) / 10 years

= $38,000

Depreciation expense for Machine B:

($600,000 - $50,000) / 10 years

= $55,000

Depreciation expense for Machine C:

($420,000 - $20,000) / 8 years

= $50,000

Revised Depreciation of Machine B:

($314,000 - $19,500) / 10 years

= $29,450

Mathematics

With financial lit--will mark branliest-- 1. net worth is equal to assets minus liabilities. which event will have the greatest impact (positive or negative) on one s net worth? pay off $4,000 of school loans with cash finance a used car at market value for $16,000 buy a new car at market value for $15,000. car depreciates 20% upon transfer of ownership from the dealer to the buyer. go on a vacation that costs $3,500 inherit $2,000 from a relative 2. subprime lending rates are 1) than prime lending rates and are commonly offered to people with

Step-by-step answer

P Answered by PhD

6

1. Go on a vacation that costs $3,500
Paying off money for buying a car will not decrease your net worth as you get the car as assets for the money you use. But the depreciates 20% will cause you to lose $3,000 assets. Assuming you are not buying assets at all, go on a vacation that costs $3,500 will increase liability without any effect on assets. Paying up bills will decrease your asset but it also decreases your liability so the net worth wouldn't change.

2. 1) higher 2) lower
Subprime lending is lending money to people with a low credit score that was not really fit for the credit. This means the risk of getting the money back would be higher than prime lending. Since the risk of losing the money is higher, the interest should be higher than prime lending.

3. $200,000
The house price is $250k and the buyer put 20% down which is; 20%*$250k= $50k
Then the rest of the money that needs to be paid by the mortgage would be: $250k-$50k=$200k

4. Lower, Increase
In variable rate loans, the interest will be adjusted by the market. That means the rates will be unpredictable since it was based on the condition of the market. It will be safer for the creditor since he/she will absolutely get the revenue no matter how the market goes. This change is a bit dangerous for the borrower because the number of rates can increase dramatically.

5. Higher, lower
When you pay 30 years mortgage, the total loan is divided by 30 years which was 2 times more than 15 years. Excluding the rates, you can estimate that the 15 years mortgage payment will be twice than 30years mortgage. The total cost would also be lower since the interest rate is applied for 15 years, about half than 30 years.

6. Negative $3,500
Net worth is assets minus liability.
The list of the assets would be:
$500 in short-term savings
$5,000 in her retirement savings account
Total assets= $500+$5,000= $5,500

The list of liability would be:
$1,500 in credit card debt
student loan debt of $7,500

Total liability= $1,500+ $7,500= $9,000Net worth= $5,500- $9,000= - $3,500

Mathematics

**need ? ? 1. hank bought a $24,000 car when he graduated from college. his car will lose half of its value in 6.58 years. at what rate does hank’s car depreciate? a) 30% b) 20% c) 10% d) 5% 2. a new car worth $20,000 loses 20% of its value every year. is the value of the car represented by a linear or exponential function? a) linear b) exponential c) both linear and exponential d) neither linear or exponential

Step-by-step answer

P Answered by Specialist

14

12000=24000(1-r)^6.58
Solve for r
R=0.09998*100=9.9998%
Round your answer
R=10%

To solve the second question we use the formula of
A=p(1-r)^ t

Business

Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017. BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) 35,000 18,000 Inventory 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation —equipment (35,000 ) (25,000 ) Copyrights 46,000 50,000 Total assets $313,000 $295,000 Accounts payable $46,000 $40,000 Income taxes payable 4,000

Step-by-step answer

P Answered by PhD

1

The statement of cash flows using the direct method is $6,000.

Brecker Inc., Statement of cash flows

Cash flows from operating activities:

Cash received from customers$327,150

[$338,150 - ($62,000 - $51,000)]

Less Cash paid to suppliers($149,000)

[$175,000 - ($46,000 - $40,000) + ($40,000 - $60,000)]

Less Cash paid for operating expenses ($89,000)

[$120,000 + ($5,000 - $4,000) - ($35,000 - ($25,000 - ($20,000 ×70%))) + ($46,000 - $50,000) + ($4,000 - $8,000)]

Less Cash paid for interest($11,400)

Less Cash paid for income taxes($8,750)

[$6,750 + ($6,000 - $4,000)]

Net cash provided by operating activities $69,000

Cash flows from financing activities:

Sales of equipment$8,000

[($20,000 - ($20,000 ×70%)) + $2,000]

Less Purchase of equipment ($44,000)

($154,000 - $130,000 + $20,000)

Add Purchase of available-for-sale investments-$17,000

($18,000 -$35,000)

Net cash used by financing activities -$53,000

Cash flows from investing activities:

Principal payment on short-term loan-$2,000

($8,000 - $10,000)

Less Principal payment on long-term loan($9,000)

($69,000 - $60,000)

Less Dividend payment$6,000

Net cash used by financing activities -$17,000

Net decrease in cash -$1,000

[$69,000+(-$53,000)+(-$17,000)]

Add Cash, December 31, 2016$7,000

Cash, December 31, 2017,$6,000

($-1,000+$7,000)

Inconclusion the statement of cash flows using the direct method is $6,000.

Learn more about statement of cash flows here:link

Mathematics

**need ? ? 1. hank bought a $24,000 car when he graduated from college. his car will lose half of its value in 6.58 years. at what rate does hank’s car depreciate? a) 30% b) 20% c) 10% d) 5% 2. a new car worth $20,000 loses 20% of its value every year. is the value of the car represented by a linear or exponential function? a) linear b) exponential c) both linear and exponential d) neither linear or exponential

Step-by-step answer

P Answered by Specialist

14

12000=24000(1-r)^6.58
Solve for r
R=0.09998*100=9.9998%
Round your answer
R=10%

To solve the second question we use the formula of
A=p(1-r)^ t

A car depreciates at a rate of 30% per year. How much will a $20 000 car be worth after five years? (3 marks)

Step-by-step answer

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