question 10 (4 points)\nyour friend purchased a van for $41,200. the van depreciates at a rate of 15% per…

question 10 (4 points)\nyour friend purchased a van for $41,200. the van depreciates at a rate of 15% per year. after 5 years, your friend decides to sell the van. what is the value of the van after 5 years?\nuse this formula:\n$fv = pv(1 - r)^t$\nenter the dollar amount rounded to the nearest cent.\nyour answer:\nanswer
Answer
Explanation:
Step1: Identify values
$PV = 41200$, $r=0.15$, $t = 5$
Step2: Substitute values into formula
$FV=41200\times(1 - 0.15)^5$ $FV=41200\times(0.85)^5$
Step3: Calculate $(0.85)^5$
$(0.85)^5=0.85\times0.85\times0.85\times0.85\times0.85 = 0.4437053125$
Step4: Calculate $FV$
$FV=41200\times0.4437053125=18280.668875$
Answer:
$18280.67$