Question

Tom spent $17,886 for a new car. The car will depreciate 11% each year. What will the car be worth after 11

years? Round your answer to the nearest cent. Do not include the dollar sign in your answer.

Answer 1

495.62

Explanation:

Given data

Amount=$17,886

Rate = 11%

TIme= 11 years

Let us apply the compounding expression

A=P(1-r)^t----------The negative sign is due to decreasing value

substitute

A= 1786(1-0.11)^11

A=1786(0.89)^11

A=1786*0.2775

A=495.615

Hence the approximate Amount will be 495.62