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
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Step-by-step explanation:
According to the formula,
Value after 5 years=present value (1-rate%/100) ^n
=25000×(1-5/100) ^5
=25000×(85/100) ^5
=11093
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