Question

You deposit $25,000 in an account that earns 2.1% interest compounded daily

Answer 1

The value after 6 years = $1937.41

Step-by-step explanation:

2b) Cost of the car = $23427

It decreases = 34%

The actual amount remaining in terms of percentage = 100% - 34% = 66%

The future value = cost of car × (66%)^time

let t = time

`\text{The model: future value = }23427*(0.66)^t`

when t = 6 years

`\text{The future value = 23427}*\text{(0.66)}^6`
`\begin{gathered} \text{The future value = 23427}*0.0827 \\ \text{the future value = \$1937.41} \end{gathered}`

The value after 6 years = $1937.41