Question

A boat costs $92,000.00 and depreciates in value by 15% per year. How much will the boat be worth after 10 years?

Answer 1

$18,112.45 (nearest cent)

Explanation:

Let y = value of the boat

Let x = the number of years

If the boat depreciates in value by 15% each year, then each year that goes by, it is worth 85% of the previous year's value (since 100 - 15 = 85)

85% = 85/100 = 0.85

Therefore, the equation is:
`y = 92000 * 0.85^x`

So, when x = 10:

`\implies y = 92000 * 0.85^(10)=18112.45`