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5 votes
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.

User Knd
by
6.6k points

2 Answers

5 votes

Answer:

1395

Explanation:

User Ryanthon
by
6.8k points
4 votes
Let the price = P , the years = x , depreciation rate = d and original cost = W


P = W * (1-d)^x

when W = 25,000 , d = %8 = 0.08 and x =7


P = 25,000 * (1-0.08)^7
P = 13,946.165 ≈ 13,946 to the nearest dollar

The price after 7 years = $13,946
User Babak Mehrabi
by
6.8k points
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