$13,946.16
1. $25,000 is 100% of the cars original cost. You want to add an 8% depreciation rate per year, so you subtract 8%, to get 92%.
2. Move 92% over two decimal places to get .92, you can multiply this by the original price to find the price of the car after one year of depreciation. 25,000 * .92 = 23,000. The car cost $23,000 after the first year.
3. Repeat this process 6 more times to find the price of the car after 7 years.
The answer is $13,946.16
