Final answer:
The value of the new truck after four years can be determined by multiplying the initial value by 0.8, raised to the power of four, which equals 0.4096. The closest answer choice is c. 0.4.
Step-by-step explanation:
The company bought a new truck, and its value depreciates by 20% each year. To find the value of the truck at the end of four years, we would need to calculate the cumulative effect of the depreciation over those four years. If the truck depreciates by 20% each year, it retains 80% of its value every year (100% - 20% = 80% or 0.8). To find the single number by which you can multiply the initial value to get the value at the end of four years, you would need to multiply 0.8 by itself four times (0.8 × 0.8 × 0.8 × 0.8).
0.8^4 = (0.8 × 0.8) × (0.8 × 0.8) = 0.64 × 0.64 = 0.4096. The closest option presented is c. 0.4, which approximates the truck's value being 40% of its original value after four years.