How to determine the value using compound interest

The video tutorial explains how to calculate the depreciation of a car that originally costs $18,000 and depreciates by 25% annually over four years. The teacher guides students through the process of identifying the initial amount, understanding the concept of depreciation as a decay process, and using a mathematical model to calculate the car's value after four years. The final calculation shows the car's value as $5,695, highlighting the significant impact of a 25% annual depreciation rate.

What is the formula used to calculate the value of the car after depreciation?

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What is the initial selling price of the car?

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How much does the car depreciate each year?

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Explain whether the depreciation of the car represents a growth or decay equation.

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After four years, what will be the value of the car?

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