The cost of 6 CDs are $12, $13, $20, $20, $12.50 and $18.50. What is the range?

Part A

The formula to be used is as shown below:

Where FV=Future Value

PV=Present Value

r=rate, n= number of years

Part B

In our case, PV=20000, r=15%=0.15, n=5

Thus applying this in the formula we get:

Part C

The value of car after 5 years will be $ 8874.1

Part D

Yes, this this answer makes sense compared to the original cost of the car. This is because the depreciation at the rate of 15% per year will bring down the cost of the car substantially over a period of 5 years. The usage of the car and wear & tear all contribute significantly to the depreciation in value of the car from $20000 to $8874.1

Part E

We can draw the graph by taking the x axis as the number of years till 5 and the y axis as the value of the car at each of those years. We can then marks the corresponding points and join them.