according to Freddie ...
Value after 5 yrs
= 2295(1.08)^5 = 3372.11
What do you think?
actually all we have to do is look at
1.08^5
which is 1.469 or appr 147%
Freddie was pretty close
Evan spent the summer earning money so he could buy the classics car of his dreams. He purchased the car for $2,295 from Fast Deal Freddie, the local used car salesman. Freddie told Evan that the car would increase by half its value after five years. Evan knows that this model appreciates 8% annually. Did Freddie try to trick Evan, or was his claim accurate?
2 answers
str