Question

PLEASE HELP ASAP!!! CORRECT ANSWER ONLY PLEASE!!!

A new car depreciates at a rate of 15% per year. What is the expected value of a $25,000 car after 5 years (rounded to nearest whole dollar)?

Answer 1

B) 11093

Explanation:

put the equation into the formula for compund interestert

A=P(1+r/n)^n(t)

P is the future value

R is your percentage

N is the number of times compounded a year

T is the number of years which it is compounded for

A= 2500(1+-0.15/1)^1(5)

Then solve for A

2500(0.85)^5

11093.63

Answer 2

Answer: B) $11,093

Explanation:

`D=P_o(1-r)^t\qquad where\\\bullet \ \text{D is the depreciated value}\\\bullet \ P_o\text{ is the initial (purchased) value}\\\bullet \ \text{r is the depreciation rate (in decimal format)}\\\bullet \ \text{t is the time (in years)}\\\\D=25,000(1-0.15)^5\\.\quad =25,000(0.85)^5\\.\quad =11,093.63`