Given: Purchasing value of car = $19,700,
Rate of depriciation = 10% per year.
To find: Final value of car after after 6 years.
Solution : Because rate of car is being depriciated exponential. So, we would exponential formula.
[tex]A = Pe^{-kt}.[/tex]
Where, P is the purchase value, k is the rate of depriciation and t is the number of years.
Plugging values P = 19,700, r=10% that is 0.10 and t= 6 in above formula.
[tex]A= 19,700e^{-0.10*6}[/tex]
[tex]A= 19,700e^{-0.60}[/tex]
A= 19,700 (0.54881163609)
A= 10811.5892311.
Rounding to the nearest penny (two decimal places0.
A= 10811.59.
Therefore, Final value of car after after 6 years = $ 10811.59
