Question

A coat costs $16,600 and decreases in value by 14% per year. How much will the boat be worth after 11 years?

A.) $3,159.30
B.) $16,446.00
C.) $70,155.46
D.) $2,717.00

Answer 1

Answer: A.) $3,159.30

Explanation:

Answer 2

A.) $3,159.30

Explanation:

We have been given that a boat costs $16,600 and decreases in value by 14% per year.

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

`y=a\cdot (1-r)^x`, where,

y = Final amount,

A = Initial value,

r = Decay rate in decimal form.

`14\%=(14)/(100)=0.14`

`y=\$16,600\cdot (1-0.14)^11`

`y=\$16,600\cdot (0.86)^11`

`y=\$16,600\cdot 0.1903193578437064`

`y=\$3159.3013402055`

`y\approx \$3159.30`

Therefore, the value of boat after 11 years would be $3159.30 and option A is the correct choice.