Question

2 A boat costs $18,800 and decreases in value by 12% per year. How much will the boat be worth after 13 years?

Answer 1

$\bf \qquad \textit{Amount for Exponential Decay} \\\\ A=P(1 - r)^t\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{initial amount}\dotfill &18800\\ r=rate\to 12\%\to \frac{12}{100}\dotfill &0.12\\ t=\textit{elapsed time}\dotfill &13\\ \end{cases} \\\\\\ A=18800(1-0.12)^{13}\implies A=18800(0.88)^{13}\implies A\approx 3568.0636019$