Let the price = P , the years = x , depreciation rate = d and original cost = W
∴[tex]P = W * (1-d)^x[/tex]
when W = 25,000 , d = %8 = 0.08 and x =7
∴ [tex]P = 25,000 * (1-0.08)^7[/tex]
P = 13,946.165 ≈ 13,946 to the nearest dollar
The price after 7 years = $13,946
