## A new car that sells for $18.000 depreciates at a rate of 25% per year. Find the value of the car after 4 years ?

Question

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## Answers ( )

Answer:After 4 years, the value of the car would be of $5695.31.

Step-by-step explanation:The formula for compound interest works perfectly in this case:

As in this case the repetitions per annum are just 1 (yearly), we can ignore the n.

Replacing variables with our values, a yields the depreciated value: