Answer:
Value of car after 5 years will be $ 11092.63
Step-by-step explanation:
Given: Amount of car, P = $ 25,000
Value of car decreases = 15% each year that is R = 15%
Time, T = 5 years.
To find: Approximate value after 5 years.
We use the following formula of depreciation.
[tex]A=P(1-\frac{R}{100})^n[/tex]
where, n is number of periods.
here, n = T = 5
So,
[tex]A=25000(1-\frac{15}{100})^5[/tex]
[tex]A=25000(\frac{100-15}{100})^5[/tex]
[tex]A=25000(\frac{85}{100})^5[/tex]
[tex]A=25000(0.4437053125)[/tex]
[tex]A=25000\times0.4[/tex]
A = $ 11092.63
Therefore, Value of car after 5 years will be $ 11092.63
