Question

Math Homework Help

Answer 1

From the given scenario above, the value of the car after n years is given by the equation,
                          V(n) = V₁(1 - d)^n
Where V(n) is the value after n years, V₁ is the original value, d is the depreciation rate and n is the number of years. Substituting the known values,
                          V(n) = ($25,750)(1 - 0.2)^5
                                 = $8,437.76
Thus, the answer is the second choice.