Question

"You purchase a vintage car for $140,000 and it appreciates (i.E. Increases in value) by 4% annually. How much will the car be worth in 10 years?"

Answer 1

Future Value= $207,234.2

Explanation:

Giving the following formula:

Initial value (PV)= $140,000

Appreciation rate (r)= 4% = 0.04

Number of years (n)= 10

To calculate the future value of the car after ten years, we need to use the following formula:

FV= PV*(1+i)^n

FV= 140,000*(1.04^10)

FV= $207,234.2