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1 vote
A sailboat depreciates at 15% of its original value each year. If the sailboat was $9,500 at its time of purchase, what is the value of the sailboat after 7 years?

$3,045.48
$7,269.91
$8,075.00
$25,270.19

User Klange
by
6.4k points

2 Answers

5 votes

Answer:

A

Explanation:

User AaronLS
by
6.1k points
3 votes

Answer:

$3,045.48

Explanation:

Hello

the sailboat depreciates at 15% of its original value each year ,it means that at the end of each year the sailboat value is 85% of the value at the beginning of the year,we can express that.

Value at the end of the year= value at the beginning of the year *85%

Value at the end of the year= value at the beginning of the year *85/100

Value at the end of the year= value at the beginning of the year *0.85

Step 1

year 1

Value at the end of the year 1= value at the beginning of the year *0.85

Value at the end of the year 1= $9500 *0.85

V=$8075,this value is the initial for the next year

Step 2

year 2

Value at the end of the year 2= value at the beginning of the year *0.85

Value at the end of the year 2= 8075 *0.85

V=$6863.75,this value is the initial for the next year

Step 3

year 3

Value at the end of the year 3= value at the beginning of the year *0.85

Value at the end of the year 3= $6863.75*0.85

V=$5834.18,this value is the initial for the next year

Step 4

year 4

Value at the end of the year 4= value at the beginning of the year *0.85

Value at the end of the year 4= $5834.18*0.85

V=$4959.059,this value is the initial for the next year

Step 5

year 5

Value at the end of the year 5= value at the beginning of the year *0.85

Value at the end of the year 5= $4959.059*0.85

V=$4215.20,this value is the initial for the next year

Step 6

year 6

Value at the end of the year 6= value at the beginning of the year *0.85

Value at the end of the year 6= $4215.20*0.85

V=$3582.92,this value is the initial for the next year

Step 7

year 7

Value at the end of the year 7= value at the beginning of the year *0.85

Value at the end of the year 7= $3582.92*0.85

V=$3045.48,this is the value of the sailboat after seven years

Have a great day

User Rich Rajah
by
6.0k points