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enot [183]
3 years ago
8

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.
Mathematics
1 answer:
Sholpan [36]3 years ago
4 0
The value would be $14,000.

The formula we use for this is

A = p(1+r)ˣ, where p is the initial value, r is the percent of depreciation (as a decimal number) and x is the number of years.  Note that since it is depreciation, r will be a negative number.

A = 25000(1-0.08)⁷ = 13946.17 ≈ 14000
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