What is the value, after 7 years, of a 2014 ford mustang that orginally cost 25,000.00 if it depreciates 8% a year

$13,946.17.

Step-by-step explanation:

We have been given that Ford Mustang that originally cost 25,000.00. It depreciates 8% a year. We are asked to find the value of Mustang after 7 years.

We will use exponential decay function to solve our given problem.    

An exponential decay function is in form , where,

a = Initial value,

r = Decay rate in decimal form.

Let us convert our given decay rate in decimal form.

Upon substituting our given values in above formula we will get,

Therefore, the value of machine after 7 years would be $13,946.17.

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