Question

A boat costs $11850 and decreases in value by 10% per year how much will the boat be worth after 8 years

Answer 1

Answer: the boatf will be worth $5101 after 8 years.

A decrease of 10% is equivalent to multiplying the current value by 0.9.

Every year the value gets multiplied so we get an exponential function in years:

value after y years =
`V\cdot0.9\cdot0.9\cdot\cdot\cdot0.9=V\cdot0.9^y`

value after 8 years =
`\$11850\cdot0.9^8=\$11850\cdot0.43\approx \$5101`

Answer 2

Explanation:

Keep subtracting 10 %

U will get 5101 approx.