A car costs $25,750.00 and depreciates in value by 20% per year. How much will the car be worth after 5 years?%0D%0A(1 point)%0D%0AResponses%0D%0A%0D%0A$5,150.00%0D%0A$5,150.00%0D%0A%0D%0A$8,437.76%0D%0A$8,437.76%0D%0A%0D%0A$8,240.00%0D%0A$8,240.00%0D%0A%0D%0A$20,600.00
To find the value of the car after 5 years, we need to calculate the depreciation value for each year and subtract it from the original cost.
First Year:
Depreciation value: 20% of $25,750.00 = $5,150.00
Value after the first year: $25,750.00 - $5,150.00 = $20,600.00
Second Year:
Depreciation value: 20% of $20,600.00 = $4,120.00
Value after the second year: $20,600.00 - $4,120.00 = $16,480.00
Third Year:
Depreciation value: 20% of $16,480.00 = $3,296.00
Value after the third year: $16,480.00 - $3,296.00 = $13,184.00
Fourth Year:
Depreciation value: 20% of $13,184.00 = $2,636.80
Value after the fourth year: $13,184.00 - $2,636.80 = $10,547.20
Fifth Year:
Depreciation value: 20% of $10,547.20 = $2,109.44
Value after the fifth year: $10,547.20 - $2,109.44 = $8,437.76
Therefore, the car will be worth $8,437.76 after 5 years.