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3 October, 16:05

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.

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  1. 3 October, 18:37
    0
    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
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