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A vehicle purchased for $29,800 depreciates at a constant rate of 8%. Determine the approximate value of the vehicle 11 years after purchase. Round to the nearest whole dollar.

Respuesta :

Looks like the value will be 29.800$ * (0.92)^11 around 11909 dollars

Answer:

The value of the vehicle would be $ 11,909

Step-by-step explanation:

Given,

The original value of the vehicle, P = $29,800,

Rate of depreciation, r = 8% = 0.08

Time, t = 11 years,

Thus, the value of the car after 11 years,

[tex]A=P(1-r)^t[/tex]

[tex]=29800(1-0.08)^{11}[/tex]

[tex]=29800(0.92)^{11}[/tex]

= 11909.193861

≈ $ 11,909