A car costs $22,500 and decreases by 12% each year. How much will the car be worth in 5 years?

22,500 *.12 = $2,700 * 5 = $9,000 - 22,500 = $13,500

We take 88% instead of 12% because at the end of each year the cost of the car is 88% of the previous year

So I did this

Let's x be the amount after n year's so

22,500*0.88^n = x

As given in the question above we have n = 5

So 22,500*0.88^5 = x

22,500*0.5277319168 = 11837.96

The car should be worth about 11837.96.