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?

Question

asked Apr 20, 2022 186k views

1 Answer

Viz · Answer 1 · 2022-04-25T11:18:59+0000

Answer:

$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