Marc Bought A New Car Last Year For 10 000 He Can Now Sell The Car For 8 500 To
Marc bought a new car last year for $10,000. He can now sell the car for $8,500. To buy this year’s model he would have to pay $11,000. Marc also had to take out a $9,000 loan to buy the car, which had to be paid back in yearly installments of $3,300 per year over three years. What is the implicit rental rate of the first year’s use of the car:
A) $2,800
B) $1,300
C) $1,800
D) $13,300
E) $4,800
Can you please provide the steps to get the answer?
Thanks
