Finite Math and Applied Calculus (6th Edition)

Published by Brooks Cole
ISBN 10: 1133607705
ISBN 13: 978-1-13360-770-0

Chapter 2 - Section 2.2 - Compound Interest - Exercises - Page 142: 29

Answer

$\$163,414.56$

Work Step by Step

The depriciation can be calculated as: $FV=PV\times (1-r)^{t}$ Here, the present value is $PV=\$200,000$ The depriciation rate is $r=2\%$ The number of periods is $5$ years $\times 2=10$ Therefore the future value is: $FV=PV\times (1-r)^{t}=200,000\times (1-0.02)^{10}\approx 163,414.56$
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.