Answer:
The approximate value of Don car be in 5 years is $ 11364 .
Step-by-step explanation:
The exponential decreases function is defined as
[tex]y = a (1 - r)^{t}[/tex]
Where a is the initial value , r is the rate of interest in the decimal form and t is the time in years .
As given
Don bought his car for $20,350.
It is expected to depreciate an average of 11% each year during the first 5 years.
a = $ 20350
11% is written in the decimal form
[tex]= \frac{11}{100}[/tex]
= 0.11
r = 0.11
t = 5 years
Put all the values in the function
[tex]y = 20350(1 - 0.11)^{5}[/tex]
[tex]y = 20350(0.89)^{5}[/tex]
[tex]y = 20350\times 0.558406[/tex]
y = $ 11363 .5621
y = $ 11364 (Approx)
Therefore the approximate value of Don car be in 5 years is $ 11364 .
