An actuarial scientist (the appraiser) with an insurance company in GA believes that the best estimate for the book value of a car totaled in an accident that has gone through ? years of depreciation...

An actuarial scientist (the appraiser) with an insurance company in GA believes that the best estimate for the book value of a car totaled in an accident that has gone through ? years of depreciation is to use weighted values from the MARCS and the Straight Line (SL) depreciation methods. His weighted model is given by:

???=[?(????)+(?−1)(?????)] / (?+2)

Where: ??? is his calculated Book value after year n. ???? is the Book Value after n years from the MACRS and ????? is the Book Value after n years from the Straight-Line method.

Right after its third year in operation, a vehicle that was initially purchased at $55,000 was involved in an accident and was totaled. What will be the appraiser’s book value if he assumes a salvage value of $5,000 after five years