A new car is purchased for 21100 dollars. The value of the car depreciates at 10.5% per year. What will the value of the car be, to the nearest cent, after 6 years?

Answer 1

Let V(t) = value of the car in t years

V(t) = 21,100(1 - 0.105)^t = 21,100(0.895)^t

Value in 6 years = V(6) = 21,100(0.895)⁶ = $10,844.78