The value of the car when he graduates will be $18,195 if the car depreciates by 11%.
According to the given question.
The initial price of car or the present price, PV= $29000
The car depreciates by 11% anually i.e rate, r = 11% = 0.11
So to calculate the value of the car after four years, what we will use is the exponential
F = PV( 1 - r)^t
Where,
F is final value
PV is the present value
r is the rate
t is the time
Therefore,
The value of car after four years is given by
F = 29,000(1-0.11)^4 = 29000(0.89)^4 = $18,195.25
Hence, the value of the car when he graduates will be $18,195 if the car depreciates by 11%.
Find out more information about depreciation here:
https://brainly.com/question/16002404
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