A car costs $25,750.00 and depreciates in value by 20% per year. How much will the car be worth after 5 years?
(1 point)
Responses
$5,150.00
$5,150.00
$8,437.76
$8,437.76
$8,240.00
$8,240.00
$20,600.00
To find out how much the car will be worth after 5 years, we need to calculate the depreciated value for each year.
Year 1: $25,750.00 - ($25,750.00 * 0.20) = $25,750.00 - $5,150.00 = $20,600.00
Year 2: $20,600.00 - ($20,600.00 * 0.20) = $20,600.00 - $4,120.00 = $16,480.00
Year 3: $16,480.00 - ($16,480.00 * 0.20) = $16,480.00 - $3,296.00 = $13,184.00
Year 4: $13,184.00 - ($13,184.00 * 0.20) = $13,184.00 - $2,636.80 = $10,547.20
Year 5: $10,547.20 - ($10,547.20 * 0.20) = $10,547.20 - $2,109.44 = $8,437.76
Therefore, the car will be worth $8,437.76 after 5 years.