The value of the car depreciates by 18% every year, so every year, 82% (100% - 18%) of the value of the car is left.
After one year, the value of the car is $16,000(0.82) After two years, the value of the car from last year is multiplied again by 0.82: $16,000(0.82)(0.82) After three years: $16,000(0.82)(0.82)(0.82), or $16,000(0.82)^3
After n years: $16,000(0.82)^n
After 8 years, the value of the car is $16,000(0.82)^8 = $3270.63
