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arsen [322]
3 years ago
9

"You purchase a vintage car for $140,000 and it appreciates (i.E. Increases in value) by 4% annually. How much will the car be w

orth in 10 years?"
Mathematics
1 answer:
Vlada [557]3 years ago
5 0

Answer:

Future Value= $207,234.2

Step-by-step explanation:

Giving the following formula:

Initial value (PV)= $140,000

Appreciation rate (r)= 4% = 0.04

Number of years (n)= 10

<u>To calculate the future value of the car after ten years, we need to use the following formula:</u>

FV= PV*(1+i)^n

FV= 140,000*(1.04^10)

FV= $207,234.2

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