Question

Today a car is valued at $42000. The value is expected to decrease at a rate of 8% each year. What is the value of the car expected to be 6 years from now?

Answer 1

The formula is
A=p (1-r)^t
A future value?
P current value 42000
R rate of decreases 0.08
T time 6 years
A=42,000×(1−0.08)^(6)
A=42000 (0.92)^6
A=25,466.91 round your answer to get 25467

Hope it helps!