Question

A new car is purchased for 20700 dollars. The value of the car depreciates at 11% per year. What will the value of the car be, to the nearest cent, after 11 years?

Answer 1

 value after n years:

$D=P(1-r)^n$

where P = present value,

P = present value,

n = no. of years

$D=20700(1-0.11)^{11}=\$5744.60$