goes down at 7.25% per year
compound interest
[tex]A=P(1+ \frac{r}{n} )^{nt}[/tex]
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
[tex]A=28000(1+ \frac{-0.0725}{1} )^{(1)(5)}[/tex]
[tex]A=28000(1-0.0725)^{5}[/tex]
[tex]A=28000(0.9275)^{5}[/tex]
A=19218.86
it is worth about $19218.86 in 5 years
