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Katena32 [7]
3 years ago
6

Marissa bought a car for $22,000. The value of the car is decreasing at a rate of 10.5% every year. After 5 years, the value of

the car will be about how much? Round to the nearest whole dollar.
Mathematics
1 answer:
torisob [31]3 years ago
4 0

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

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