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Vesnalui [34]
3 years ago
6

The XYZ company is seeing its value declining at a rate of 3.2% per year. If the current value is $2,300,000, what will the valu

e be in 5 years?
Mathematics
1 answer:
slega [8]3 years ago
4 0
Given that its value decreases by r = -3.2% (i.e decreasing means that the rate is negative) and that the current value of the company is P = 2,300,000.

The value of the company in n = 5 years is given by

FV=P(1+r)^n \\  \\ =2,300,000(1-0.032)^5 \\  \\ =2,300,000(0.968)^5=2,300,000(0.8499) \\  \\ =\$1,954,810.81
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Step-by-step explanation:

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1. Let's solve your equation step-by-step.
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</span>Step 2: Subtract 5 from both sides.
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