Question

You decide to buy a boat that costs $8200. The normal depreciation for such a boat is 14% per year. How much will the boat be worth after 7 years?Equation:Answer:

Answer 1

Given

Cost of boat = $ 8200

Depreciation rate per year = 14%

Time = 7 years

Find

cost of boat after 7 years

Step-by-step explanation

cost of boat after 7 years =

`A_0=A(1-r)^t`

so ,

`\begin{gathered} A_0=8200(1-0.14)^7 \\ A_0=8200(0.86)^7 \\ A_0=2853.008192 \\ A_0=2853 \end{gathered}`

Final Answer

therefore, the equation is given by

`8200(1-0.14)^7`

and answer = 2853