Question

A jet ski depreciates at 11% of its original value each year. If the jet ski was $8,000 as it’s time of purchase, what is the value of the jet ski after 5 years

Answer 1

f(x) = 8000 - (8000)(0.11)x

= 8000 - 880x

f(5) = 8000 - 880(5)

= 8000 - 4400

= 3600

Answer: $3,600

Answer 2

$4467.25

Explanation:

We have been given that a jet ski depreciates at 11% of its original value each year. The jet ski was $8,000 as it’s time of purchase.

We will exponential decay function to solve our given problem.

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

a = Initial value,

r = Decay rate in decimal form.

`r=(11)/(100)=0.11`

`y=\$8,000\cdot(1-0.11)^5`

`y=\$8,000\cdot(0.89)^5`

`y=\$8,000\cdot 0.5584059449`

`y=\$4467.2475592`

`y\approx \$4467.25`

Therefore, the value of ski jet after 5 years would be $4467.25.