Answer:
The car will worth $15815 after 5 years.
Step-by-step explanation:
The formula is: [tex]A=P(1+r)^t[/tex], where P = Initial cost, A = Final cost, r = Rate of change in cost per year and t = Number of years.
Here, [tex]P= 23995, t= 5[/tex]
and [tex]r= 8\%=0.08[/tex]
As here the value of the car depreciates every year, so we need to plug the value of [tex]r[/tex] as negative. So, [tex]r=-0.08[/tex]
Now plugging the above values into the formula, we will get.....
[tex]A=23995(1-0.08)^5\\ \\ A=23995(0.92)^5\\ \\ A=15814.6611... \approx 15815[/tex]
(Rounded to the nearest dollar)
So, the car will worth $15815 after 5 years.
