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

$18.750

Explanation:

Answer 2

Answer: B) $11,093

Explanation:

`\text{The formula for depreciation is: }\\EV=P(1-r)^t\\\\\bullet EV=expected\ value\\\bullet P=principal\ \text{(original value)}\\\bullet r=rate\ of\ depreciation\\\bullet t=time\ \text{(in years)}\\\\\\\text{The given values are: }\\\bullet P=\$25,000\\\bullet r=15\%\quad (0.15)\\\bullet t=5\\\\\\EV=25,5000(1-0.15)^5\\.\quad =25,000(0.85)^5\\.\quad =25,000(0.443705)\\.\quad =\large\boxed{11,092.63}`