Question

a boat costs 16,600 and decreases in value by 14% per year how much will the boat be worth after 11 years

Answer 1

It will be worth $3,159.30

Answer 2

$3,159.30134 much will the boat be worth after 11 years

Explanation:

Using the formula:

`A = P(1+r)^t`

where

A is the amount after t years.

P is the amount

r is the rate in decimal

t is the number of years.

As per the statement:

A boat costs 16,600 and decreases in value by 14% per year

⇒P = $16, 600

As the value is decreasing by 14%=0.14, we have

r = -0.14

Then substitute the given values in [1] ;

For t =11 years.

`A = 16,600(1-0.14)^(11)`

⇒
`A = 16,600(0.86)^(11)`

⇒
`A = 16,600 \cdot 0.190319358`

Simplify:

`A = \$ 3,159.30134`

Therefore, $3,159.30134 much will the boat be worth after 11 years