question 16 (4.5 points) retake question your friend purchased a van for $33,550. the van depreciates at a…

question 16 (4.5 points) retake question your friend purchased a van for $33,550. the van depreciates at a rate of 14% per year. after 5 years, your friend decides to sell the van. what is the value of the van after 5 years? use this formula: fv = pv(1 - r)^t enter the dollar amount rounded to the nearest cent. your answer: answer

question 16 (4.5 points) retake question your friend purchased a van for $33,550. the van depreciates at a rate of 14% per year. after 5 years, your friend decides to sell the van. what is the value of the van after 5 years? use this formula: fv = pv(1 - r)^t enter the dollar amount rounded to the nearest cent. your answer: answer

Answer

Explanation:

Step1: Identify the values

$PV = 33550$, $r=0.14$, $t = 5$

Step2: Substitute into the formula

$FV=33550\times(1 - 0.14)^{5}$

Step3: Calculate the value inside the parentheses

$1-0.14 = 0.86$

Step4: Calculate the power

$0.86^{5}=0.86\times0.86\times0.86\times0.86\times0.86\approx0.470266$

Step5: Multiply by the present - value

$FV=33550\times0.470266\approx15777.43$

Answer:

$15777.43$