Question

The value of a boat is $20,000. It loses 6% of its value every year. Find the approximate monthly percent decrease in value. Round your answer to the nearest hundredth of a percent.

Answer 1

The monthly percent decrease in value is 0.50%.

Explanation:

Given:

The value of a boat is $20,000. It loses 6% of its value every year.

Now, to find the approximate monthly percent decrease in value.

Value of boat = $20,000.

Percent loses value every year = 6%.

So, to get the value of decrease in every year:

6% of $20,000.

`=(6)/(100) * 20,000`

`=0.06* 20,000`

`=\$1200.`

Thus, in a year the value loses = $1,200.

So, the monthly decrease:

`=(1200)/(12) =\$100.`

The monthly decrease = $100.

Now, to get the monthly percent decrease:

`(100)/(20000) * 100`

`=0.005* 100`

`=0.5\%.`

Therefore, the monthly percent decrease in value is 0.50%.