To calculate the value of the car after 10 years, you can use the formula:
Yr n Value = P * (1 - d)^n
Where:
- Yr n Value is the value of the car after n years
- P is the initial price of the car (in this case, $25000)
- d is the depreciation rate (0.2 for the first year and 0.1 for each succeeding year)
- n is the number of years
So, for the 10th year, the calculation would be:
Yr 10 Value = $25000 * (1 - 0.1)^9
Calculating this, we get:
Yr 10 Value ≈ $25000 * 0.3874 ≈ $9685
So, the value of the car after 10 years would be approximately $9685.
Comparing this to your calculation ($7748.40), there seems to be some discrepancy. Double-check your calculations to ensure accuracy.