Question

question 14 (4 points) you purchased a car for $52,750. the car depreciates at a rate of 15% per year. after 5 years, you decide to sell the car. what is the value of your car after 5 years? use this formula: $fv = pv(1 - r)^t$ enter the dollar amount rounded to the nearest cent. your answer: answer

Explanation:

Step1: Identify the values

$PV = 52750$, $r=0.15$, $t = 5$

Step2: Substitute values into formula

$FV=52750\times(1 - 0.15)^{5}$

Step3: Calculate $(1 - 0.15)^{5}$

$(1 - 0.15)^{5}=0.85^{5}=0.4437053125$

Step4: Calculate $FV$

$FV = 52750\times0.4437053125\approx23305.55$

Answer:

$23305.55$