Question

Bryan purchases a new boat. The expression below represents the value of the boat after x years. 22000(0.88)^(X+2)

Which statement is true?
The price of the boat decreases by 88% every year.
The price of the boat increases by 88% every year.
The price of the boat decreases by 12% every year.
The price of the boat increases by 12% every year.

Answer 1

None of the above. All the answers refer to price. The given equation refers to value. We imagine price may stay the same or actually increase year-to-year. The problem statement gives insufficient information to conclude anything about price.

Math is about attention to detail. The equation tells you ...

... The value of the boat decreases by 12% every year.

Explanation:

The value of the boat is multiplied by 0.88 each time X increases by 1. That means the value is 88% of what it was the year before, a decrease of 12%.