Vehicle, purchased for $5,000, depreciates at 10% per annum. what will be its value after 5 years? $2952

You can use the formula of annual compound interest in this case:
, where
A = the future value of the vehicle
P = the initial price of the vehicle
r = the deprecation rate (decimal)
n = the number of times price deprecate per year
t = the number of years

Now, for this case , ,  and , so let's just replace corresponding variables and calculate the future value:


So, the vehicle's value will be $2952.45 after 5 years.