Answer: The value of the car in 2021 will be $11,276.31.
Step-by-step explanation:
If r is the depreciation rate and P is the initiial amount , then the amount after t years is given by:-
[tex]A=P(1-\dfrac{r}{100})^t[/tex]
Given: P=21000, r=8.5% , t= 2021-2014= 7
Plug all the values in the formula, we get
[tex]A= 21000(1-\dfrac{8.5}{100})^7\\\\\Rightarrow\ A=21000(1-0.085)^7\\\\\Rightarrow\ A= 21000(0.915)^7\\\\\Rightarrow\ A= 21000(0.5369670)\approx11276.31[/tex]
The value of the car in 2021 will be $11,276.31.
