A car costs 25,750.00 and depreciation in value by 20%per year. How much will the car be worth after 5 years
To find the value of the car after 5 years, we need to apply the depreciation rate of 20% per year for each year.
First, we'll calculate the value after the first year:
Depreciation in the first year = 20% * $25,750.00 = $5,150.00
Value after the first year = $25,750.00 - $5,150.00 = $20,600.00
Next, we'll calculate the value after the second year:
Depreciation in the second year = 20% * $20,600.00 = $4,120.00
Value after the second year = $20,600.00 - $4,120.00 = $16,480.00
Continuing the same pattern, we can find the values after the third, fourth, and fifth years:
Value after the third year = $16,480.00 - 20% * $16,480.00 = $13,184.00
Value after the fourth year = $13,184.00 - 20% * $13,184.00 = $10,547.20
Value after the fifth year = $10,547.20 - 20% * $10,547.20 = $8,437.76
Therefore, the car will be worth $8,437.76 after 5 years.