goes down at 7.25% per year
compound interest
\(A=P(1+ \frac{r}{n} )^{nt}\)
a=future amount
p=present amount
r=rate in decimal
n=number of time per year compounded (I assume 1)
t=time in years
given
P=28000
r=-0.0725 (since it is depreciating)
assuming that n=1
and t=5
\(A=28000(1+ \frac{-0.0725}{1} )^{(1)(5)}\)
\(A=28000(1-0.0725)^{5}\)
\(A=28000(0.9275)^{5}\)
A=19218.86
it is worth about $19218.86 in 5 years
