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
