The new car you bought this year cost $42500. The value of the car decreases by about 10% annually. What will the car be worth 2027?
(Round your answer to the nearest dollar)

10%  multiplied by 6 = 60%

60% of 42500 is 25500

42500-25500= 17000

i multiplied 10% by 6 because 2027 is 6 years away and i subtracted 42500 by 25500 because it says it "decreased"

Step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%