A new car is purchased for 21100 dollars. The value of the car depreciates at \( 10.5 \% \) per year. What will the value of the car be, to the nearest cent, after 6 years? Answer Attenpt 2 out of 2

To find the value of the car after 6 years with a depreciation rate of 10.5% per year, we can use the formula: \[ V = P(1 - r)^t \] where \( V \) is the future value, \( P \) is the initial value ($21100), \( r \) is the depreciation rate (0.105), and \( t \) is the number of years (6). Plugging in the values: \[ V = 21100(1 - 0.105)^6 \approx 21100(0.895)^6 \approx 21100 \times 0.545 = 11556.45 \] Thus, the value of the car after 6 years is approximately **$11,556.45**. Now that you've made it through that math maze, just remember that depreciation isn’t just for cars! Everything from electronics to real estate can lose value over time, so knowing how to calculate it is key. It can help you in making smart purchasing decisions or even negotiating the price of used goods. And while you're crunching those numbers, don’t forget to keep your receipts! Tracking the depreciation of your car can also remind you about the importance of maintenance, as a well-kept vehicle can hold its value much better than one that’s been neglected. So give your car some TLC, and it just might surprise you in resale value!