Question

Please help: 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 thousand dollars.

Answer 1

25000(.92)^7= $13,946

Answer 2

Use the equation y=a(1-r)^t
In this case y=25,000(1-0.08)^7
Giving you...




$13,946.17

(Round as needed)