A car costs $25,750.00 and depreciates in value by 20% per year. How much will the car be worth
after 5 years?
$5,150.00
$8,437.76
$8,240.00
$20,600.00

Question

A car costs $25,750.00 and depreciates in value by 20% per year. How much will the car be worth
after 5 years? 
$5,150.00
$8,437.76
$8,240.00
$20,600.00

tkhunny · Answer

After one year: 25750 * (1 - 0.20) = 25750 * 0.80 = 20600
After two years: 25750 * 0.80^2 = 16480
After three years: You tell me.

anonymous · Answer

C, right?

tkhunny · Answer

I don't know.  I'm waiting for you to show your work and prove it to me.

tkhunny · Answer

I suspect, since we lose about a decimal place for each multiplication, that it is unlikely to end in "0.00".