A new car is purchased for 20300 dollars. The value of the car depreciates at 9.5% per year. What will the value of the car be, to the nearest cent, after 11 years?

Answer 1

To calculate the value of the car after 11 years, we can use the formula for exponential decay:

V = P(1 - r)^t

where:
V = value of the car after t years
P = initial value of the car (20300 dollars)
r = annual depreciation rate (9.5% or 0.095)
t = number of years (11)

Plugging in the values:

V = 20300(1 - 0.095)^11
V = 20300(0.905)^11
V = 20300(0.41641602649)
V = 8452.47

Therefore, the value of the car after 11 years will be approximately 8452.47 dollars.