Vocab
The estimated Value of an asset at the end of its usual life.
Definition of Salvage Value?
The total cost of a new vehicle, including base price, options, and destination charge.
What is a Sticker Price?
Coverage provides financial protection to the policyholder against claims for bodily injury and property damage as a result of an accident.
What is liability insurance?
V=Price(1-r)^t
Formula for Exponential Depreciation
The specific out-of-pocket amount you must pay before the insurance company starts covering a claim.
What is a deductible?
A car has a sticker price of $28,500. The dealership offers a 10% discount. What is the discount amount?
$2,850 Discount
Pays for damage to the insured vehicle caused by a collision with another Vehicle or an object such as a Telephone pole
What is Collision Insurance
A luxury SUV costs $80,000 new and is expected to be worth $16,000 after 8 years.
$8,000
The amount paid to the insurer to keep coverage active.
What is a Premium?
A car has a sticker price of $32,000. The dealership has added an option of heated seats to the vehicle at a charge of $1,000. What is the total sticker price of the car?
32,000+1,000 = $33,000
Sarah has a car insurance deductible of $500. She gets into an accident that causes $2,000 in covered damage. How much does Sarah pay out of pocket, and how much does insurance pay?
Sarah-$500
Insurance-$1,500
Bob bought a car that originally sold for $59,500. It exponentially depreciates at a rate of 13% per year. What is the car’s value after 3 years?
$39,108.93
The maximum amount of money you can charge on your card at any time.
What is a Credit Limit?
Landon is buying his dream car for $85,000. He makes a 10% down payment. He gets a 6-year loan with an annual interest rate of 5.5%. What is the monthly car payment?
- Find the down payment = $85,000(0.10)= $8,500
-Subtract the down payment from the purchase price = $85,000- 8,500= $76,500
James has a car insurance deductible of $750. His covered repair bill is $750. How much does he pay, and how much does insurance pay?
James-$750
Insurance-$0
A car was purchased for $82,000. The vehicle depreciates by 11% each year. Write an exponential function for a vehicle that has owned for 6 years. Find the value.
$40,752.46
A function where more than one formula is used to define the output over different pieces of the domain.
What is a Piecewise Function?
River City Autos has a truck for sale. Its base price is $42,225. Prices for available options are Long Bed for, $3,508; trailer tow package, $950; and a moon roof, $1,100. Its destination charge is $900. What is the sticker price for the truck?
Options:$5,558
Sticker Price: $48,683
A family has a $1,500 health insurance deductible. They have already paid $900 toward it. They receive a covered medical bill for $1,000. How much of the bill goes toward meeting the remaining deductible, and how much of the bill is left after the deductible is met?
$600 of the bill goes toward meeting the deductible.
$400 of the bill is left after the deductible is met.
The value of an asset is reduced uniformly over each period until it reaches its salvage value.
What is a Straight line depreciation