Algebra-1

1. Understand the problem:

We are dealing with exponential decay here since the value of the car is decreasing by a certain percentage each year.

 

2. Use the formula for exponential decay:

The formula to calculate the value of an asset after  years with a rate of decay  (expressed as a decimal) starting from an initial value  is .

 

In this case:

The initial value  of the car is $.

The rate of decay  is  or  in decimal form.

The number of years  is .

 

3. Substitute the values into the formula:

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