Answer:
$5,102.05
Step-by-step explanation:
Present value of the car = $21,500
Present percentage value = 100% = 1
Percentage of Depreciation per year = 25% = 0.25
Years of depreciation = 5 years
The value of the car after 5 years = Present value of the car (Present percentage value - Percentage of Depreciation per year)^Years of depreciation
= 21,500(1 - 0.25)^5
= 21,500(0.75)^5
= 21,500(0.2373046875)
= 5,102.05078125
Approximately,
The value of the car after 5 years = $5,102.05
