Step 1
Write all parameters out.
Initial cost P = $8000
% Depreciation r = 11% = 11/100 = 0.11
Time t = 5 years
Cost after 5 years = A
Step 2
Apply exponential decrease formula to find the worth of the car after 5 years
[tex]\begin{gathered} A=P(1-r)^t \\ A=8000(1-0.11)^5 \\ A=8000(0.89)^5 \\ A\text{ = 8000 }\times\text{ 0.5584} \\ A\text{ = 4467.25} \\ A\text{ = 4467} \end{gathered}[/tex]Therefore,
The worth of the car after 5 years = $4467
