Answer:
Future Value = $ 12528.15
Step-by-step explanation:
The depreciation is applied to the car annually. The value of the car after depreciation in "n" no. of years can be given by the following formula:
[tex]Future\ Value = (Present\ Value)(1-depreciation\ rate)^n\\[/tex]
where,
Future Value = ?
Present Value = $ 24000
Depreciation Rate = 15% = 0.15
n = no. of years = 4
Therefore,
[tex]Future\ Value = (\$ 24000)(1-0.15)^4[/tex]
Future Value = $ 12528.15
