Answer:
£2,621.44
Step-by-step explanation:
Original cost of car = £8000
If it looses 20% of its value yearly
Value at the end of first year
80% * 8000
= 0.8 * 8000
= 6400
Value at the end of second year
80% * 6400
= 0.8 * 6400
= 5120
Value at the end of third year
80% * 5120
= 0.8 * 5120
= 4096
Value at the end of fourth year
80% * 4096
= 0.8 * 4096
= 3,276.8
Value at the end of fifth year
80% * 3,276.8
= 0.8 * 3,276.8
= 2,621.44
Hence the value in 5 years time will be £2,621.44
