If a car depreciates from $20,000 to $15,000, what is the percentage decrease?

To determine the percentage decrease of the car's value from $20,000 to $15,000, you start by calculating the amount of depreciation. This is done by subtracting the final value from the initial value:

[

\text{Depreciation} = \text{Initial Value} - \text{Final Value} = 20,000 - 15,000 = 5,000.

]

Next, to find the percentage decrease, you divide the depreciation amount by the initial value:

[

\text{Percentage Decrease} = \left(\frac{\text{Depreciation}}{\text{Initial Value}}\right) \times 100 = \left(\frac{5,000}{20,000}\right) \times 100.

]

Simplifying this gives:

[

\text{Percentage Decrease} = 0.25 \times 100 = 25%.

]

Thus, the correct answer is indeed 25%, indicating that the car’s value has decreased by a quarter of its initial price. This method of calculating percentage decreases helps in understanding how much value an item loses over time, which is important when considering investments like vehicles.