Question

The value of a car is decreasing by 12​% per year. If the car is worth ​$11,000 ​today, what will it be worth in two​ years?

Answer 1

$8518.40

Explanation:

FV = PV(1+r)^n

FV = future value

PV = present value

r = rate

n = # of years

Value in 2 yrs = 11,000 x (1 - 0.12)^2 = 8518.4