Question

A car costs $25,000 and depreciates in value by 9% per year. How much will the car be worth after 4 years? Round to hundredths.

Answer 1

So you have a simple interest problem here...

Amount = P( 1 - r)^t

t = time (in years)
r = rate (percent in decimal)
P = principal/original amount

So

Amount = 25000(1 - .09)^4

This comes out to what?