SOLUTION: A new car depreciates at a rate of 15% per year. What is the expected value of a $25,000 car after 5 years (rounded to nearest whole dollar)?
A) $20750
B) $11093
C) $9429
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Question 1026567: A new car depreciates at a rate of 15% per year. What is the expected value of a $25,000 car after 5 years (rounded to nearest whole dollar)?
A) $20750
B) $11093
C) $9429
D) $6250
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A new car depreciates at a rate of 15% per year. What is the expected value of a $25,000 car after 5 years (rounded to nearest whole dollar)?
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V(t) = 25000*0.85^t
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V(5) = 25000*0.85^5 = $11092.63
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Cheers,
Stan H.
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A) $20750
B) $11093
C) $9429
D) $6250
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