Question

What is the value,after 7 years,of a 2014 Ford Mustang that orginally cost 25,000.00 if it depreciates 8% a year

Answer 1

$13,946.17

Explanation:

i got it right in math nation

Answer 2

$13,946.17.

Explanation:

We have been given that Ford Mustang that originally cost 25,000.00. It depreciates 8% a year. We are asked to find the value of Mustang after 7 years.

We will use exponential decay function to solve our given problem.

An exponential decay function is in form
`y=a\cdot (1-r)^x`, where,

a = Initial value,

r = Decay rate in decimal form.

Let us convert our given decay rate in decimal form.

`8\%=(8)/(100)=0.08`

Upon substituting our given values in above formula we will get,

`y=\$25,000\cdot (1-0.08)^7`

`y=\$25,000\cdot (0.92)^7`

`y=\$25,000\cdot 0.55784660123648`

`y=\$13,946.165030912\approx \$13,946.17`

Therefore, the value of machine after 7 years would be $13,946.17.