Your friend’s mom bought a Pontiac Aztec in 2005 for $25,000. Carmax offered her
ID: 1119842 • Letter: Y
Question
Your friend’s mom bought a Pontiac Aztec in 2005 for $25,000. Carmax offered her $800 in 2016 for it, but she refused to sell because kbb.com told her it was worth $1900. She hydrolocked the engine and destroyed it driving through storm surge in Norfolk earlier this year, and it’s been sitting on the side of the road ever since. Two scrapyards are willing to pay $400 for it, and are at least willing to haul it off for free. What is the present market value of your friend’s mom’s Aztec?
a. $400
b. $800
c. $1,900
d. $25,000
Explanation / Answer
The present value of Aztec should be $400
She bought Aztrec for $25,000 in 2005 so it is the purchase price not current market value
In 2016 Carmax offered $800 for it but at that time it was intact not destroyed. So it is not the current market value
As per kbb.com it was worth $1900 in 2016 but at that time it was intact but currently its been destroyed so it is not the current market value
Scrapyards are will to pay for this Aztec now and also willing to haul it for free so the current market value would be $400
Therefore the answer is option 'a' i.e. $400
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.