Answer: the value of the car in 2019 is $5269
Step-by-step explanation:
It loses 12% of its value every year. This means that the value of the car is decaying exponentially. 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 = $21500
r = 12% = 12/100 = 0.12
t = 2019 - 2008 = 11 years
Therefore
A = 21500(1 - 0.12)^11
A = 21500(0.88)^11
A = 5269
