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a boat cost 12,050 and decreases in value by 12% per year. How much will the boat be worth after 9 years

User Dbader
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1 Answer

3 votes
Given:
Cost = 12,050
depreciation rate = 12%

year beginning value dep.rate depreciation ending value
1 12,050.00 12% 1,446.00 10,604.00
2 10,604.00 12% 1,272.48 9,331.52
3 9,331.52 12% 1,119.78 8,211.74
4 8,211.74 12% 985.41 7,226.33
5 7,226.33 12% 867.16 6,359.17
6 6,359.17 12% 763.10 5,596.07
7 5,596.07 12% 671.53 4,924.54
8 4,924.54 12% 590.94 4,333.60
9 4,333.60 12% 520.03 3,813.56

The boat will be worth $3,813.56 after 9 years.

Depreciation = beginning cost x depreciation rate
Ending cost = beginning cost - depreciation

Depreciation is the wear and tear of an object that decreases its value.
User Steven Web
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