Brian, Josh, and Max play the lottery each week even though they know that the odds are against them. One week, to their amazement, they win $3,000,000 in the big drawing. They have agreed that they would split the proceeds evenly and pay all taxes. We will assume that the
government takes 40% of their winnings (when combining Federal, State, and local taxes). They each buy a car and invest the remaining
balance of their winnings. They each keep their car for 10 years (each car depreciates at a different rate) before selling it for its residual value.
When they receive the money from the car it is immediately invested into the same account they put the remaining balance of their winnings in.
Assume they are 20 years old today and they keep all of their money invested until they are 65 years old.
a) Brian buys a used Nissan Altima from Carmax for $11,000. Because it is a used car it depreciates at 4%/yr. Brian takes good care of it for 10
years. Brian invests all of his money into an investment that yields 6.25%/yr compounded quarterly. How much money will Brian have when he
is 659 $
b) Josh buys a new Ford F-150 for $28,300. This car depreciates at 6.5%/yr. Josh invests all of his money into an investment that yields
6.50%/yr compounded semiannually. How much money will Josh have when he is 65?
c) Max buys a new Aston Martin for $171,000. This car depreciates at 7%/yr. Max invests all of his money into an investment that yields
6.50%/yr compounded monthly. How much money will Max have when he is 65? $

Brian, Josh, and Max play the lottery each week even though they know that the odds are against them. One week, to their amazement, they

win $3,000,000 in the big drawing. They have agreed that they would split the proceeds evenly and pay all taxes. We will assume that the

government takes 40% of their winnings (when combining Federal, State, and local taxes). They each buy a car and invest the remaining

balance of their winnings. They each keep their car for 10 years (each car depreciates at a different rate) before selling it for its residual value.

When they receive the money from the car it is immediately invested into the same account they put the remaining balance of their winnings in.

Assume they are 20 years old today and they keep all of their money invested until they are 65 years old.

a) Brian buys a used Nissan Altima from Carmax for $11,000. Because it is a used car it depreciates at 4%/yr. Brian takes good care of it for 10

years. Brian invests all of his money into an investment that yields 6.25%/yr compounded quarterly. How much money will Brian have when he

is 659 $

b) Josh buys a new Ford F-150 for $28,300. This car depreciates at 6.5%/yr. Josh invests all of his money into an investment that yields

6.50%/yr compounded semiannually. How much money will Josh have when he is 65?

c) Max buys a new Aston Martin for $171,000. This car depreciates at 7%/yr. Max invests all of his money into an investment that yields

6.50%/yr compounded monthly. How much money will Max have when he is 65? $

Step-by-step explanation:

so big question