SOLUTION: Manny purchased a new car this year for $20,500. The car is expected to depreciate at an annual rate of 16%. Using the model, about how much will Manny�s car be worth after 5 years

Question 935567: Manny purchased a new car this year for $20,500. The car is expected to depreciate at an annual rate of 16%. Using the model, about how much will Manny�s car be worth after 5 years? Round to the nearest dollar.
Answer by TimothyLamb(4379) (Show Source): You can put this solution on YOUR website!
depreciation formula:
v = c(1-r)^t
where:
v = future value
c = current value
r = depreciation rate per period
t = number of periods
---
v = 20500*(1-0.16)^5
v = 8573.35
---
answer:
the car will be worth: $8573.35 after five years
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