Question 517098
Let {{{ n = 19000 }}}, the cost when new
Let {{{ v }}} = the current value
At end of 1st year:
{{{ v = (4/5)*n }}}
At end of 2nd year:
{{{ v = (4/5)*(4/5)*n }}}
At end of 3rd year:
{{{ v = (4/5)*(4/5)*(4/5)*n }}}
At end of 4th year:
{{{ v = (4/5)*(4/5)*(4/5)*(4/5)*n }}}
At the end of the 5th year:
{{{ v = (4/5)*(4/5)*(4/5)*(4/5)*(4/5)*n }}}
-------------
This is the same as {{{ (4/5)^5 * n }}}
{{{ (4/5)^5 = 1024/3125 }}}
{{{ (4/5)^5 = .32768 }}}
{{{ .32768*19000 = 6225.92 }}}
The value after 5 years is $6,225.92