Question

A boat cost $16,500 and decreases in value by 13% per year how much will the boat be worth after eight years?

Answer 1

$5,415.49

Explanation:

Cost of the boat = $16,500

Decrease in value per year = 13%

Worth of the boat in 8 years = ?

Remaining value = 100% - 13%

= 87%

Worth of the boat in 8 years = cost of the boat × remaining value^8

= $16,500 × 87%^8

= $16,500 × 87/100^8

= $16,500 × 0.87^8

= $16,500 × 0.3282116715437121

= $5,415.49

The worth of the boat after 8 years = $5,415.49