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?

What is the initial selling price of the car?

How much does the car depreciate each year?

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

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