Question

What is the value after 7 years of a 2014 ford mustang that originally costs $25,000.00 if it depreciates at a rate of 8% per year round your answer to the nearest dollar

Answer 1

The rounded answer is equal to 14000

Explanation:

Answer 2

After 7 years it will have a value of $13.946 to the nearest dollar.

Explanation:

As it depreciates by 8% (0.08) a year the value of the car after each year is

1 - 0.08 = 0.92 of the previous year's value.

So we have the formula:

Value = 25,000(0.92)^7

= $13,946.17 (answer).