A car's value depreciates by 15% each year. If its initial value was $20,000, what will be its value after 2 years?

✓ Correct Answer: Option B

After 1 year, the value is $20,000 * (1 - 0.15) = $20,000 * 0.85 = $17,000. After 2 years, the value is $17,000 * 0.85 = $14,450.