Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for $11,000, which of the following is true?

A) Noah gains $1,000 of value, and Emily gains $3,000 of value.

B) Noah gains $10,000 of value, and Emily loses $14,000 of value.

C) Noah gains $11,000 of value, and Emily loses $11,000 of value.

D) Noah and Emily both gain $11,000 of value.

Question

Business

River Tran

15 July, 10:14

Noah values his car at $10,000, and Emily values it at $14,000. If Emily buys it from Noah for $11,000, which of the following is true?

A) Noah gains $1,000 of value, and Emily gains $3,000 of value.

B) Noah gains $10,000 of value, and Emily loses $14,000 of value.

C) Noah gains $11,000 of value, and Emily loses $11,000 of value.

D) Noah and Emily both gain $11,000 of value.

+3

Answers (1)

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Anika Maldonado · Answer 1

Answer: The correct answer is a) Noah gains $1,000 of value, and Emily gains $3,000 of value

Explanation:

The gain to each person will be based on the value on the car.

Noah valued his car for $10000 and sold it for $11000. To him is gain is $1000 which is an increase in the value.

However, Emily's value on the same car is $14000. Since she purchased the car for $11000, she has made a gain / savings of $3000.