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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)?

Guest Mar 7, 2017

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FV = PV[1 - 15%]^5

FV =25,000 x 0.85^5

FV =25,000 x  0.4437053125

FV =$11,092.63 - expected value of the car after 5 years.

Guest Mar 7, 2017
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1+0 Answers

 #1
avatar
+5
Best Answer

 

FV = PV[1 - 15%]^5

FV =25,000 x 0.85^5

FV =25,000 x  0.4437053125

FV =$11,092.63 - expected value of the car after 5 years.

Guest Mar 7, 2017

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