question 7 (4.5 points) you purchased a car for $37,550. the car depreciates at a rate of 15% per year…

question 7 (4.5 points) you purchased a car for $37,550. the car depreciates at a rate of 15% per year. after 4 years, you decide to sell the car. what is the value of your car after 4 years? use this formula: $fv = pv(1 - r)^t$ enter the dollar amount rounded to the nearest cent. your answer: answer question 8 (4.5 points) your friend purchased a van for $30,100. the van depreciates at a rate of 14% per year. after 1 year, your friend decides to sell the van. what is the value of the van after 1 year? 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 for the formula
$PV = 37550$, $r=0.15$, $t = 4$
Step2: Substitute values into the formula
$FV=37550\times(1 - 0.15)^4$
Step3: Calculate the value inside the parentheses
$1-0.15 = 0.85$
Step4: Calculate the power
$0.85^4=0.85\times0.85\times0.85\times0.85 = 0.52200625$
Step5: Multiply by the present - value
$FV=37550\times0.52200625\approx19691.33$
Answer:
$19691.33$
Explanation:
Step1: Identify the values for the formula
$PV = 30100$, $r = 0.14$, $t=1$
Step2: Substitute values into the formula
$FV=30100\times(1 - 0.14)^1$
Step3: Calculate the value inside the parentheses
$1-0.14 = 0.86$
Step4: Multiply by the present - value
$FV=30100\times0.86=25886$
Answer:
$25886$