Explain the proccess to get the answer: A car cost $25,750.00 and depreciates in 20% per year how much will the car be worth in 5 years

Answer 1

To find out how much the car will be worth in 5 years, we need to calculate the depreciation for each year and subtract that amount from the original cost.

1. Calculate the depreciation amount for 1 year:
20% of $25,750.00 = 0.20 x 25,750 = $5,150.00

2. Subtract the depreciation amount from the original cost to find out how much the car will be worth after 1 year:
$25,750.00 - $5,150.00 = $20,600.00

3. Repeat this process for each subsequent year. After 5 years, the car will be worth:
$20,600.00 - $5,150.00 = $15,450.00
$15,450.00 - $5,150.00 = $10,300.00
$10,300.00 - $5,150.00 = $5,150.00
$5,150.00 - $5,150.00 = $0.00

Therefore, after 5 years, the car will be worth $0.00.

Answer 2

What is the correct answer

Answer 3

I apologize for the mistake in my previous explanation. Let's correct the calculation:

1. Calculate the depreciation amount for 1 year:
20% of $25,750.00 = 0.20 x 25,750 = $5,150.00

2. Subtract the depreciation amount from the original cost to find out how much the car will be worth after 1 year:
$25,750.00 - $5,150.00 = $20,600.00

3. Repeat this process for each subsequent year. After 5 years, the car will be worth:
$20,600.00 x 0.80 = $16,480.00
$16,480.00 x 0.80 = $13,184.00
$13,184.00 x 0.80 = $10,547.20
$10,547.20 x 0.80 = $8,437.76
$8,437.76 x 0.80 = $6,750.21

Therefore, after 5 years, the car will be worth approximately $6,750.21.