Answer:
The worth of the car after 6 years is £2,134.82
Step-by-step explanation:
The amount at which Dan buys the car, PV = £2200
The rate at which the car depreciates, r = -0.5%
The car's worth, 'FV', in 6 years is given as follows;
[tex]FV = PV \cdot \left ( 1 + \dfrac{r}{100} \right )^n[/tex]
Where;
r = The depreciation rate (negative) = -0.5%
FV = The future value of the asset
PV = The present value pf the asset = £2200
n = The number of years (depreciating) = 6
By plugging in the values, we get;
[tex]FV = 2200 \times \left ( 1 + \dfrac{-0.5}{100} \right )^6 \approx 2,134.82[/tex]
The amount the car will be worth which is its future value, FV after 6 years is FV ≈ £2,134.82 (after rounding to the nearest penny (hundredth))
