A car cost $25,750.00 and depreciates in 20% per year how much will the car be worth in 5 years
To calculate the depreciation of the car, we need to multiply its value by the depreciation rate each year. The depreciation rate is given as 20%, which can be written as 0.20.
After the first year, the car will be worth 80% of its original value:
$25,750.00 * 0.80 = $20,600.00
After the second year, the car will be worth 80% of its previous value:
$20,600.00 * 0.80 = $16,480.00
We can repeat this process for the remaining 3 years:
Year 3:
$16,480.00 * 0.80 = $13,184.00
Year 4:
$13,184.00 * 0.80 = $10,547.20
Year 5:
$10,547.20 * 0.80 = $8,437.76
After 5 years, the car will be worth $8,437.76.