Answer:
the value after 5 years is 72,103.59
Explanation:
One can calculate this kind of problems as the calculation of future value of the today car cost, so take into account the next formula:
[tex]FV=PV*(1+i)^{n}[/tex]
where FV is future value, PV is the present value, i is the periodic interest rate and n is the number of periods. So applying to this particular problem we have:
[tex]FV=62,500*(1+0.029)^{5}[/tex]
[tex]FV=72,103.59[/tex]
