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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 in 5 years?

Verified Answer :

Answer:

The approximate value of Don car be in 5 years is $ 11364 .

Step-by-step explanation:

The exponential decreases function is defined as

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Where a is the initial value , r is the rate of interest in the decimal form and t is the time in years .

As given

Don bought his car for $20,350.

It is expected to depreciate an average of 11% each year during the first 5 years.

a = $ 20350

11% is written in the decimal form

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= 0.11

r = 0.11

t = 5 years

Put all the values in the function

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y = $ 11363 .5621

y = $ 11364 (Approx)

Therefore the approximate value of Don car be in 5 years is $ 11364 .

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