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

$14,000.00 I think. Because if you multiply 8 percent by 7 years, you get 56 percent or .56. Then multiply $25,000.00 by .56 you'll get $14,000.00

Answer 2

A=25,000×(1−0.08)^(7)
A=13,946.17