A new car is purchased for 20700 dollars

Answer:

Given:

The cost of the new car = $ 20700

The rate of depreciation of the car = 11% per year

To find:

The value of the car, to the nearest cents, after 11 years

Solution:

We know that when there is a decrease in the price of car, machines or certain valuable articles, then to find its value after n years, the following formula can be used:

where

D = value after n years

P = present value

R = rate of decrease

n = no. of years

Now, we will substitute the given values in the formula,

D = 20700 

⇒ D = 20700 

⇒ D = 20700 

⇒ D = 20700 × 0.277517 ...... [0.89¹¹ = 0.277517 calculation done on calculator]

⇒ D = $ 5744.60

Thus, the value of the car after 11 years will be $ 5744.60.