Geometric sequence | Business & Finance homework help

This formula can be used to calculate the value of your car after any number of years by plugging into the equation above. For example, if you bought a dream car for $20 000 and wanted to know how much it would be worth after 5 years, you would use the following calculation: v5 = ($20 000)(3/4)5 = $9 375.

This equation can also help predict future values in case you want to sell or trade in your vehicle before its full depreciated value is reached. Knowing that cars typically lose around 25% of their value annually will help you make smarter decisions down the line and possibly save money as well . Ultimately , understanding this simple mathematical formula essential part accurately gauging true cost ownership giving yourself better chance maximizing return investment.