The value of a car decreases by 20 percent per year. Mr. Sing purchases a $22,000 automobile. What is the value of the car at the end of the second year? $14,080
$17,600
$19,800
$26,400

$14,080

Step-by-step explanation:

You can use a formula for exponential decay, but since it is only 2 years, you can find 80% of the original value, and then 80% of the new value.

Original value: $22,000

Value after 1 year: 80% of $22,000 = 0.8 * $22,000 = $17,600

Value after 1 year: $17,600

Value after 2 years: 80% of $17,600 = 0.8 * $17,600 = $14,080

$14,080