kevincan
The book values of two restaurant ovens decrease each year by the same constant percentage. Oven A and Oven B have book values of $3,600 and $4,800, respectively, 20 years after installation, and $1,800 and $2,400, respectively, 25 years after installation. What is the difference between the book values of the two ovens 5 years after installation?
A. $9,600
B. $12,800
C. $14,400
D. $16,000
E. $19,200
The prices of oven A and B after 20 yrs of installation is $3600 and $4800 respectively.
Price of oven A and B after 25 yrs from installation is $1800 and $2400 respectively.
The value has halved every 5 yrs.
From 20 yrs after installation to 5 yrs after installation, the gap year is 15 yrs.
Which is multiplied by 2 three times to reach 5 yrs after installation.
Difference in values between two ovens = ($4800-$3600) = $1200.
$1200 * (2*2*2) =
$9600. Option A