Answer:
Value of car after 5 years will be $ 11092.63
Step-by-step explanation:
Given: Amount of car, P = $ 25,000
Value of car decreases = 15% each year that is R = 15%
Time, T = 5 years.
To find: Approximate value after 5 years.
We use the following formula of depreciation.
![A=P(1-\frac{R}{100})^n](https://tex.z-dn.net/?f=A%3DP%281-%5Cfrac%7BR%7D%7B100%7D%29%5En)
where, n is number of periods.
here, n = T = 5
So,
![A=25000(1-\frac{15}{100})^5](https://tex.z-dn.net/?f=A%3D25000%281-%5Cfrac%7B15%7D%7B100%7D%29%5E5)
![A=25000(\frac{100-15}{100})^5](https://tex.z-dn.net/?f=A%3D25000%28%5Cfrac%7B100-15%7D%7B100%7D%29%5E5)
![A=25000(\frac{85}{100})^5](https://tex.z-dn.net/?f=A%3D25000%28%5Cfrac%7B85%7D%7B100%7D%29%5E5)
![A=25000(0.4437053125)](https://tex.z-dn.net/?f=A%3D25000%280.4437053125%29)
![A=25000\times0.4](https://tex.z-dn.net/?f=A%3D25000%5Ctimes0.4)
A = $ 11092.63
Therefore, Value of car after 5 years will be $ 11092.63