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

P(t) = 21100·(1 - 0.105)^t, where t in years; so, prise P(t) = 21100·0.895^t·

P(6) = 21100·0.895⁶ = $10844.78