Question

A vehicle purchased for $20,700 depreciates at a constant rate of 9%. Determine the approximate value of the vehicle 11 years after purchase. Round to the nearest whole dollar.

Answer 1

Step 1:

In this question, we are given the following:

A vehicle purchased for $20,700 depreciates at a constant rate of 9%. Determine the approximate value of the vehicle 11 years after purchase. Round to the nearest whole dollar.

Step 2:

The details of the solution are as follows:

`\begin{gathered} The\text{ approximate value of the car after 11 years = } \\ 20700\text{ \lparen 1 - }(9)/(100))^(11)= \end{gathered}`

`\approx\text{ \$ 7335 \lparen correct to the nearest whole dollar\rparen}`