A car costs $25,750.00 and depreciates in value by 20% per year. How much will the car be worth after 5 years?
To calculate the depreciation per year, we need to multiply the initial value of the car by the depreciation rate (20% or 0.2): $25,750.00 * 0.2 = $5,150.00 per year.
To determine the value after 5 years, we subtract the total depreciation ($5,150.00 * 5 = $25,750.00) from the initial value of the car: $25,750.00 - $25,750.00 = $0.00.
After 5 years, the car will be worth $0.00 or will have no value.