Answer:
After 4 years, the value of the car would be of $5695.31.
Step-by-step explanation:
The formula for compound interest works perfectly in this case:
[tex]a = p {(1 + \frac{r}{n} )}^{nt} [/tex]
As in this case the repetitions per annum are just 1 (yearly), we can ignore the n.
Replacing variables with our values, a yields the depreciated value:
[tex]a = 18000 {(1 - 0.25)}^{4} \\ a = 18000 {(0.75)}^{4} \\ a = 18000(0.31640625) \\ a = 5,695.3125 = 5695.31[/tex]
