Question

If a boat with a value of $23, 000 depreciates at a rate of 18% per year, what is the value

Answer 1

Using an exponential function, it is found that the value of the car after 5 years will be of $8,527.

What is an exponential function?

A decaying exponential function is modeled by:

$A(t) = A(0)(1 - r)^t$

In which:

• A(0) is the initial value.

• r is the decay rate, as a decimal.

For this problem, the initial cost and the decay rate are given as follows:

A(0) = 23000, r = 0.18.

Hence the value of the boat after t years is given as follows:

$A(t) = A(0)(1 - r)^t$

$A(t) = 23000(1 - 0.18)^t$

$A(t) = 23000(0.82)^t$

The value after 5 years will be of:

$A(5) = 23000(0.82)^5 = 8527$

The value of the car after 5 years will be of $8,527.

More can be learned about exponential functions at brainly.com/question/25537936

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Answer 2

The value of the car after 5 years is 8527.02 dollars

How to find the value after depreciation?

Depreciation is the reduction in the value of an asset over time due to elements such as wear and tear. For example a car is said to "depreciate" in value after a discovery of a faulty transmission.

The value after 5 years can be found as follows:

Rate = 18% = 18 / 100 = 0.18

Initial Value  = $23,000

time = 5 years

Therefore,

y = 23000(1 + 18%)⁵

y = 23000(1 - 0.18)⁵

y = 23000(0.82)⁵

y = 23000 × 0.3707398432

y = 8527.0163936

y = 8527.02 dollars

Therefore, the value of the car after 5 years is 8527.02 dollars

learn more on depreciation here: brainly.com/question/24515212

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