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 of the car after 5 years, we first need to calculate the depreciation for each year.
Year 1: $25,750 * 0.20 = $5,150
Year 2: $25,750 - $5,150 = $20,600
Year 2: $20,600 * 0.20 = $4,120
Year 3: $20,600 - $4,120 = $16,480
Year 3: $16,480 * 0.20 = $3,296
Year 4: $16,480 - $3,296 = $13,184
Year 4: $13,184 * 0.20 = $2,637.60
Year 5: $13,184 - $2,637.60 = $10,546.40
After 5 years, the car will be worth $10,546.40.