To find the value of the car after 10 years, we can use the formula for exponential decay, which is given by:
\[ V = P \times (1 - r)^t \]
where:
- \( V \) is the future value of the car,
- \( P \) is the initial purchase price,
- \( r \) is the annual depreciation rate (as a decimal),
- \( t \) is the number of years.
In this case:
- \( P = 12329 \)
- \( r = 0.085 \) (since 8.5% as a decimal is 0.085)
- \( t = 10 \)
Plugging in the values:
\[ V = 12329 \times (1 - 0.085)^{10} \]
Calculating \( (1 - 0.085) \):
\[ 1 - 0.085 = 0.915 \]
Now, calculate \( 0.915^{10} \):
\[ 0.915^{10} \approx 0.42241 \quad (\text{using a calculator}) \]
Now we can calculate \( V \):
\[ V = 12329 \times 0.42241 \approx 5207.54 \]
Thus, the value of the car after 10 years will be approximately:
\[ \boxed{5207.54} \]