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?

Answer 1

depreciation formula

A = P(1-r)^(t)
where A is the final value (which you'll solve for)
P is the initial value ($25,750)
r is the interest rate as a decimal (0.2)
and t is time (5 yrs)

plug in and evaluate A