Answer: $11364
Step-by-step explanation:
The exponential equation for depreciation is given by :-
[tex]A=P(1-r)^x[/tex], where P is the initial amount, r is the rate of deprivation in x years.
Given: The cost price of car = $20,350
The rate of depreciation =11%=0.11
To calculate the approximate value of his car be in 5 years, substitute x=5 in the above equation, we get
[tex]A=20350(1-0.11)^5\\\\\Rightarrow A=20350(0.89)^5\\\\\Rightarrow A=11363.5609787\approx11364[/tex]
Hence, the approximate value of his car be in 5 years is $11364.
