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Don bought his car for $20,350. It is expected to depreciate an average of 11% each year during the first 5 years.


What will the approximate value of his car be in 5 years

Verified Answer :

The answer is $11,364

JeanaShupp

Answer: $11364

Step-by-step explanation:

The exponential equation for depreciation is given by :-

@@MATH_TOKEN_0@@, where P is the initial amount, r is the rate of deprivation in x years.

Given: The cost price of car = $20,350

The rate of depreciation =11%=0.11

To calculate the approximate value of his car be in 5 years, substitute x=5 in the above equation, we get

\(A=20350(1-0.11)^5\\\\\Rightarrow A=20350(0.89)^5\\\\\Rightarrow A=11363.5609787\approx11364\)

Hence, the  approximate value of his car be in 5 years is $11364.

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