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(a) Calculate the average rate of depreciation of each type of car.

(b) Use the calculated depreciation rates to estimate the value of the car after 1, 2, etc. years of age. How does this match the actual values?

(c) Graph the values and estimated values for each car.

Problem 1.22 A bond is issued which promises to pay £400 per annum in perpetuity. How much is the bond worth now, if the interest rate is 5%? (Hint: the sum of an infinite series of the form

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