Answer:
$6553.6
Step-by-step explanation:
The current worth of the car = $20,000
The car depreciate 20% every year
In five years, the worth of the car is ?
First year,
20% of $20,000 = 0.2 * $20000 = $4000
The value of the car after the first year = $20000 - $4000 = $16000
Second year,
20% of $16,000 = 0.2 * $16000 = $3200
The value of the car after the second year is $16000 - $3200 = $12800
Third year,
20% of $12800 = 0.2 * $12800 = $2560
The value of the car after the third year is $12800 - $2560 = $10,240
Fourth year,
20% of $10,240 = 0.2 * 10,240 = $2048
The value of the car after the fourth year is $10,240 - $2048 = $8192
Fifth year,
20% of $8192 = 0.2 * $8192 = $1638.4
The value of the car after the fifth year is $8192 - $1638.4 = $6553.6
