The value of a car is $8,400
it decreases by 5% this year.
Price of the car after 1st year:
So, the price of the car after the 1st year will be $7,980.
Price of the car after 2nd year:
Now you will use $7,980 as a starting price.
So, the price of the car after the 2nd year will be $7,581.
Therefore, the car will be worth $7,581 two years from now.