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Please show all work You own the 1956 Bentley pictured to the right.The car cost you $45,000, but you need to sell it, and have
Please show all work
- You own the 1956 Bentley pictured to the right.The car cost you $45,000, but you need to sell it, and have it listed for $42,000.Your friend says he wants to buy it, but he can't get a loan.He says that he can pay you $9,999 next year, $11,999 the following year, $9,999 in the year after that, and $11,999 in four years.If interest rates are about 2%, should you take the deal?Justify your answer.
- You have another friend who wants to buy the Bentley.He can't get a car loan either, so he says that if you sell him the car, he'll pay you $54,489 four years from now.If interest rates are about 5%, should you sell him the car?Justify your answer.
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