Question

Marv is considering two different vehicles. The Cheetah sells for $12,000 and depreciates at a rate of 18% per year. The Panther sells for $18,000 and depreciates at a rate of 24% per year. Which car is worth more after 6 years? Panther, at $3469 Cheetah, at $3469 Panther, at $3648 Cheetah, at $3648

Answer 1

Cheetah::

1st year, 12000-18% of 12000
12000-2160= $9840
2nd year, 9840-18% of 9840
9840-1771.2 = $8068.8
similarly 3rd year,$6616.416
4th year, $5425.5
5th year, $4448.9
6th year, $3648

Panthere::

sa e process but subtract 24%
1st year,18000-24% of 18000
18000-4320 = $13680
2nd year, $10396.8
3rd year, $7901.5
4th year, $6005.1
5th year, $4563.9
6th year, $3469.

So Cheetah has more value of $3648 in a period of 6 yrs
d)Cheetah, at $3648