Respuesta :
The value of the gauge car after 4 years will be $18195.25.
What is compound interest?
Compound interest is applicable when there will be a change in principle amount after the given time period.
For example, if you give anyone $500 at the rate of 10% annually then $500 is your principle amount. After 1 year the interest will be $50 and hence principle amount will become $550 now for the next year the interest will be $550, not $500.
Given,
Principle amount (P) = $29000
Rate of decrement (R) = 11%
Time period(T) = 4 years
Percentage decrement over T time period is given by
Final amount = P[tex][1 - R/100]^{T}[/tex]
Final amount = 29000[tex][1 - 11/100]^{4}[/tex]
Final amount = 29000(0.89)⁴
Final amount = $18195.25.
Hence, The value of the gauge car after 4 years will be $18195.25.
For more information about compound interest,
brainly.com/question/26457073
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