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please help! MHF401 . CPT Day #5: The danger of financing a vehicle In this last CPT we are going to look at probably the
please help!
MHF401 . CPT Day #5: The danger of financing a vehicle In this last CPT we are going to look at probably the second biggest expenditure that people make, the purchase of a car. Here's the scenario; After tax pricing on the vehicle is $30 000 The vehicle will be fully paid off after exactly 7 years The balance still remaining on the vehicle follows a linear function This vehicle purchase suffers the same fate as most vehicle's depreciation: This vehicle depreciates at a rate of 18% per year, meaning it loses 18% of its value that year. One of the potential problems for vehicle purchasers/owners is that they find themselves in an upside down car loan, meaning, they owe more on the vehicle than what the vehicle is worth. What do you need to do to complete this CPT? (glad you asked!) 1. Determine two functions, one to represent the balance owing ($) on the vehicle and two, a function to represent the value that the vehicle is worth (after n years) MHF401 . CPT Day #5: The danger of financing a vehicle In this last CPT we are going to look at probably the second biggest expenditure that people make, the purchase of a car. Here's the scenario; After tax pricing on the vehicle is $30 000 The vehicle will be fully paid off after exactly 7 years The balance still remaining on the vehicle follows a linear function This vehicle purchase suffers the same fate as most vehicle's depreciation: This vehicle depreciates at a rate of 18% per year, meaning it loses 18% of its value that year. One of the potential problems for vehicle purchasers/owners is that they find themselves in an upside down car loan, meaning, they owe more on the vehicle than what the vehicle is worth. What do you need to do to complete this CPT? (glad you asked!) 1. Determine two functions, one to represent the balance owing ($) on the vehicle and two, a function to represent the value that the vehicle is worth (after n years) Step by Step Solution
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