Jaime Has an Old Car That He Expects Will Last

question 44

Multiple Choice

Jaime has an old car that he expects will last for only three more years. He says he derives $1,000 worth of services from the car each year. He expects the scrap value of the car to be so low that it is not worth considering. If the interest rate is 7 percent, it is not likely that he will sell the car unless he is paid more than

• A)$763.
• B)$2,800.
• C)$1,562.
• D)$1,925.
• E)$2,624.

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Definitions:

Revise

The process of making changes to a document, plan, design, or idea to correct errors or improve the overall quality.

Beliefs

The acceptance that something exists or is true, especially one without proof.

Propositions

Statements or assertions that express judgments or opinions, which can be either true or false.

Rhetoric

The art of effective or persuasive speaking or writing, especially the use of figures of speech and other compositional techniques.