Answer: The value of the stove after 5 years is $1121.54
Step-by-step explanation:
Given: The price of stove A= $1150
The price depreciates about 0.5% each year.
In decimal the rate of depreciation r= 0.005
The value of the stove after x years is given by
[tex]P=A(1-r)^x[/tex]
The value of the stove after 5 years is given by
[tex]P=1150(1-0.005)^5\\=1150(0.995)^5\\=1150(0.975248)\\=1121.5360[/tex]
Hence, The value of the stove after 5 years is $1121.54.
