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Dennis_Churaev [7]
3 years ago
7

The value of a new $5400 sailboat decreases 10% per year. Find its value after 5 years. Round to the nearest penny.

Mathematics
1 answer:
Furkat [3]3 years ago
5 0

Answer:

FV= $3,352.98

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $5,400

Number of periods (n)= 5 years

Interest rate (i)= 10%

<u>To calculate the future value (FV), we need to use the following formula:</u>

FV= PV / (1 + i)^n

FV= 5,400 / (1.1^5)

FV= $3,352.98

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