Each year the value of a car decreases by 25% of its value from the previous year. After 5 years, what is the value of a car that was originaly worth $17,500.00

Question

This question is stumping my 11 year old.  Can someone please show me the process in which to solve this to help explain this to her.

Answer 1

A decrease of 25% means that 75% of the value remains. This is the first "trick!"

The value of each year is the previous year multiplied by 75% or 0.75

1. 17500(0.75)

2. 17500(0.75)(0.75)

3. 17500(0.75)(0.75)(0.75)

4. 17500(0.75)(0.75)(0.75)(0.75)

5. 17500(0.75)(0.75)(0.75)(0.75)(0.75)

 

Now that can be shortened to 17500(0.75)⁵

17500(0.0009765625)

17.09 (rounded)

Not worth much!