Answer:
So, option d is correct i.e,
V₀ = $393,000, b = 0.85, and the value after 7 years is $125,986.80
Step-by-step explanation:
The formula given is V(t)=V₀(b)^t
The value of V₀ (the actual worth) is:
V₀ = $393,000
The value of b is :
b= (1-15%) = (1-0.15) = 0.85
Value of assets after 7 years is:
t= 7, V₀ = $393,000, b=0.85
putting values in formula:
V(t) = Vo(b)^t.
V(7)= $393,000 * (0.85) ^ 7
V(7)= $393,000 * (0.320)
V(7)= $125986.80
So, option d is correct i.e,
Vo = $393,000, b = 0.85, and the value after 7 years is $125,986.80
