Question

A boat costs $11,000 and decreases in value by 7% per year. How much will the boat be worth after 6 years? a $7,116.89 b $10,958.00 c $6,618.71 d $16,508.03

Answer 1

A) $7,116.89

Explanation:

Use the simple interest formula, V = P(1 + r)^t

Principal is 11,000, r is -0.07, t is 6

multiply 11,000 by 0.93^6