Question

today a boat valued at $45,000.Thebvalue is expected to decrease at a rate of 8.5% each year.What is the value of the boat expected to be 3 years from now

Answer 1

Current value of the boat = $45000

Rate at which the value decrease = 8.5%

Value decreased after 1 year =
`(8.5)/(100)*45000=3825`

Hence, value becomes =
`45000-3825=41175`

Value decreased after 2nd year =

`(8.5)/(100)*41175=3499.875`

Hence, value becomes =
`41175-3499.875=37675.125`

Value decreased after 3 year =

`(8.5)/(100)*37675.125=3202.385`

Hence, value becomes =
`37675.125-3202.385=34472.74`

So, value of the boat after 3 years becomes $34472.74