A car dealership wants to try out a new leasing arrangement,

Last updated: 7/14/2022

A car dealership wants to try out a new leasing arrangement, which will allow a buyer to trade a car back to the dealership for a certain amount of credit at any time throughout the first four years of ownership. For a car in good condition, the arrangement will value the car at 1/4 the original price at the end of four years, and will depreciate the value of the car linearly over the course of the four years. What is the value of a car with initial purchase price Pat the end of the first year? Write your answer as an expression in terms of P. Write the exact answer. Do not round.