A vehicle purchased for $27,500 depreciates at a constant rate of 8%. Determine the approximate value of the vehicle 11 years after purchase. Round to the nearest whole dollar.

10990

Step-by-step explanation:

We use the exponential equation

y = ab^x

where a is the inital value, b is the decay rate and x is the years

b = 1 - the depreciation rate

y = 27500 (1-.08) ^ 11

27500 (.92) ^11

10990.02789

To the nearest whole dollar

10990