A car purchased for $17,500. After each year the resale value decreases by 20%. What will the resale value be after 4 years? Round to the nearest dollar
The value at the end of the year is 100% - 20% = 0.80 of the value at the beginning of the year. After 4 years of multiplying by this factor, the value is $17,500·0.80⁴ = $7,168
