Acar is purchased for
$22,500
. after each year, the resale value decreases by
25%
. what will the resale value be after
5
years?

Not sure if you've learned this but we can use exponents to make an equation.

y = cn^x

with y being the new price, c being the original, n being the rate of increase (or decrease) and x being years. This use of exponents has many names in economics and calculus but i wont bore you with that.

in our case:

we can find n by finding how much will be left of the price.
1.00 - 0.25 = 0.75

f(x) = (22500)(0.75)^x

f(5) = (22500)(0.75)^5
     

       =$5339.35