Answer:
Step-by-step explanation:
A new car is purchased for $25,000 over time its value depreciates by one half every 5 years. How long, to the nearest tenth of a year, would it take for the value of the car to be $5,000?
The formula now given as:
F = P(1 - r) ^t
F = Future value = $5000
P = Present value = $25000
r = Depreciation rate = 1/2 every 5 years
Hence:
5000 = 25000( 1 - ) ^t
