Question

Marcus purchased a sail boat for $56,900. he anticipates each year the boat will decrease in value by 8.1% from the previous year.

enter numbers in the boxes to write an exponential function that models the value in dollars of the boat x years after Marcus's purchase.

Answer 1

Results are below.

Explanation:

Giving the following information:

Purchase price= $56,900

Decrease in value= 8.1% per year from the previous year

To calculate the value of the sailboat after x number of years, we need to use the following formula:

Future value= purchase price / (1 + decrease in value)^x

For 10 years:

FV= 56,900 / (1.081^10)

FV= $26,112.91