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.

The value would be $14,000.

The formula we use is 



where A is the total amount, p is the initial value, r is the rate of depreciation written as a decimal number, and t is the amount of time.  Since it is depreciation, our value of r is negative.  Using our information, we have:

A=25000(1-0.08)⁷ = 25000(0.92)⁷ = 13946.17 ≈ 14000