Question

The car was 28000 the car value go down at the rate of 7.25% what would its value be after 5 years

Answer 1

goes down at 7.25% per year
compound interest

`A=P(1+ (r)/(n) )^(nt)`
a=future amount
p=present amount
r=rate in decimal
n=number of time per year compounded (I assume 1)
t=time in years

given
P=28000
r=-0.0725 (since it is depreciating)
assuming that n=1
and t=5


`A=28000(1+ (-0.0725)/(1) )^((1)(5))`

`A=28000(1-0.0725)^(5)`

`A=28000(0.9275)^(5)`
A=19218.86
it is worth about $19218.86 in 5 years