Question

vehicle, purchased for $5,000, depreciates at 10% per annum. What will be its value after 5 years? $2952

Answer 1

You can use the formula of annual compound interest in this case:
$A = P (1 + \frac{r}{n})^n^t$, where
A = the future value of the vehicle
P = the initial price of the vehicle
r = the deprecation rate (decimal)
n = the number of times price deprecate per year
t = the number of years

Now, for this case $P = 5000$, $r = -0.1$, $t = 5$ and $n = 1$, so let's just replace corresponding variables and calculate the future value:
$A = 5000 * (1 + \frac{-0.1}{1})^5=5000*0.9^5=5000*0.59049=2952.45$

So, the vehicle's value will be $2952.45 after 5 years.