Answer: the value of the car will be about $12634
Step-by-step explanation:
We would apply the formula for exponential decay which is expressed as
A = P(1 - r)^ t
Where
A represents the value of the car after t years.
t represents the number of years.
P represents the initial value of the car.
r represents rate of decay.
From the information given,
P = $22000
r = 10.5% = 10.5/100 = 0.105
t = 5 years
Therefore
A = 22000(1 - 0.105)^5
A = 22000(0.895)^5
A = $12634
