Answer:
$15353.13
Explanation:
The cost of the new car is $25000
It's value decreases by 15% each year
So value of the car after 1 year = (100-15)% of original cost
100 - 15% = 85% which in decimal is 0.85
Cost after 1 year = 25000 (0.85)
Coast after 2 years = 25000(0.85)(0.85) = 25000(0.85)²
After 3 years cost = 25000(0.85)³ = $15353.125 or $15353.13 to the nearest cent
In general, the cost of the car in n years
= 25000(0.85)ⁿ