A new car purchased for $24,000 depreciates at a rate of 5% each year. How much is the car worth in 6 years?

$17,642.21 (nearest cent)

Step-by-step explanation:

Since the price depreciates by 5% each year, after each year the car's price will be 95% of its price the precious year.

Hence the price of the car can be expressed as (0.95^t)(24,000), where t is the number of years since it was purchased.

Substituting t = 6 into the equation,

(0.95^6)(24,000) = $17,642.21 (nearest cent)

step-by-step explanation:

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