Marissa bought a car for $22,000. The value of the car is decreasing at a rate of 10.5% every year. After 5 years, the value of the car will be about how much? Round to the nearest whole dollar.

Answer: the value of the car will be about $12634

Step-by-step explanation:

We would apply the formula for exponential decay which is expressed as

A = P (1 - r) ^ t

Where

A represents the value of the car after t years.

t represents the number of years.

P represents the initial value of the car.

r represents rate of decay.

From the information given,

P = $22000

r = 10.5% = 10.5/100 = 0.105

t = 5 years

Therefore

A = 22000 (1 - 0.105) ^5

A = 22000 (0.895) ^5

A = $12634