question 5 (4 points)\nyou purchased a car for $24,050. the car depreciates at a rate of 20% per year. after…

question 5 (4 points)\nyou purchased a car for $24,050. the car depreciates at a rate of 20% per year. after 3 years, you decide to sell the car. what is the value of your car after 3 years?\nuse this formula:\n$fv = pv(1 - r)^t$\nenter the dollar amount rounded to the nearest cent.\nyour answer:\nanswer
Answer
Explanation:
Step1: Identify values
$PV_0 = 24050$, $r=0.2$, $t = 3$
Step2: Substitute into formula
$PV=PV_0(1 - r)^t=24050\times(1 - 0.2)^3$
Step3: Calculate $(1 - 0.2)^3$
$(1 - 0.2)^3=0.8^3=0.8\times0.8\times0.8 = 0.512$
Step4: Calculate final value
$PV=24050\times0.512 = 12313.6$
Answer:
$12313.60$