#### Explanation:

Recall that the formula for compound interest is:

$\textcolor{b l u e}{| \overline{\underline{\textcolor{w h i t e}{\frac{a}{a}} A = P {\left(1 + \frac{r}{n}\right)}^{n \left(t\right)} \textcolor{w h i t e}{\frac{a}{a}} |}}}$

where:
$A =$future value
$P =$principal (starting) amount
$r =$annual interest rate, expressed as a decimal
$n =$number of times the interest is compounded in a year
$t =$number of years compound interest occurs for

$1$. Start by substituting your known values into the formula. Note that the annual interest rate is $- 0.15$ since the car depreciates (becomes lower in value) each year.

$A = 25000 {\left(1 + \frac{- 0.15}{1}\right)}^{1 \left(5\right)}$

$2$. Solve for $A$.

A=25000(0.85))^5

$A = 11092.63$

color(green)(|bar(ul(color(white)(a/a)A~~\$11093color(white)(a/a)|)))