Because unintended land changes by distracted drivers are responsible for 43% of all highway fatalities, ford motor co. and volvo launched a program to develop technologies to prevent accidents by sleepy drivers. a device costing $260 tracks lane markings and sounds an alert during lane changes. if these devices are included in 100,000 new cars per year beginning 3 years from now, what would be the present worth of their cost over a 10-year period at an interest rate of 10% per year?

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan