# Economics based on investment

#### Kaiso

A retired junk yard operator, Edsel Studebaker, recently died and left his entire fortune of $12,300,000toatrusttoestablishajunkcarmuseum. Thetrusteesmustdecidehowtospendit. Landcanbepurchasedfor$180,000now. Themuseumbuildingwillrequire30,000squarefeet of administrative and work space. Each car displayed will require an additional 1000 square

#### Denis

Math Team
Code:
YR        TRANSACTIONS             INTEREST        BALANCE
0  12,300,000[1]  -280,000[2]                   12,020,000

1  -1,500,000[3]                 1,081,800      11,601,800

2  -1,500,000[3]  -100,500C[4]   1,044,162      11,145,962 - 100,500C

3    -200,000[5]       -30C[6]           ?               ?

Solve for C:
.09(11145962 - 100500C) = 200000 + 30C
C = 88.499... so 88 cars

0  12,300,000     -280,000                      12,020,000

1  -1,500,000                    1,081,800      11,601,800

2  -1,500,000   -8,844,000       1,044,162       2,301,962

3    -200,000       -2,640         207,178       2,306,500

4    -200,000       -2,640         207,585       2,311,445
C = number of Cars.

[1] from estate
[2] right away expenses: 180,000 + 100,000
[3] admin sq. footage: 30,000 @ $100 = 3,000,000: 1,500,000 year1 and year2 [4] per car purchase: 1,000 sq.ft @$100 = 100,000 + 500 = 100,500
[5] annual operating expenses, beginning year3
[6] per car annual expense, beginning year3

Note that fund increases slightly: due to 88 cars instead of 88.49...
Enough for a huge xmas party each year

#### Kaiso

Thank you so much Denis this is great!!

Just one question, to solve for c how did you rearrange the equation to do so?

Cheers.

#### Denis

Math Team
Kaiso said:
Just one question, to solve for c how did you rearrange the equation to do so?
Huh? You mean your teacher gives you this involved problem,
but has not teached how to solve such a basic equation? :shock:
Or did you skip classes in order to go to the poolroom?

Ok; the equation looks like this:
5(10 - 2c) = 4 + 3c
Multiply what's inside brackets by 5:
50 - 10c = 4 + 3c ; continue...
13c = 46
c = 46/13

OK?

#### Kaiso

Hahahaha Algebra always confused me with the chopping and changing either side of the =, :?

Thank you heaps for your feed back, I appreciate it.

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