Final answer:
To find the current value after depreciation, we use the formula for exponential depreciation, which in this case equals approximately $17,135.55. The best estimate among the provided choices is $17,450 (Option A).
Step-by-step explanation:
The question relates to thebing's value over time. To calculate the current value of Joe Arcikoski's duplex after it depreciates 3% per year for 5 years given that the original cost was $20,000, we apply the formula for exponential depreciation:
Current Value = Original Value × (1 - depreciation rate)^number of years
Plugging in the values:
Current Value = $20,000 × (1 - 0.03)^5
Current Value = $20,000 × (0.97)^5
Current Value = $20,000 × 0.85673
Current Value = $17,135.55
The closest value to $17,135.55 from the given options is $17,450, which suggests a slight difference due to rounding at some step not shown here. Therefore, answer choice A would be the best estimate based on the provided options.