if the car costs $25,750 and is decreases its value by 20% each year you would multiply $25,750 by .2 and you would get $5,150. So $5,150 would be the dollar amount it would decrease by each year. The problem asks how much the car would be worth after 4 years so you multiply $5,150 by 4 and get $20,600. With that amount you just got, you subtract it from the original price.
$25,750 - $20,600
Your answer would be that the car will be worth $5,150 in 4 years.
Hope this helps
