Question

A jet ski depreciates at 11% of its original value each year. If the jet ski was $8,000 as it’s time of purchase, what is the value of the jet ski after 5 years

Answer 1

f(x) = 8000 - (8000)(0.11)x

     = 8000 - 880x

f(5) = 8000 - 880(5)

     = 8000 - 4400

     = 3600

Answer: $3,600

Answer 2

Answer:

$4467.25

Step-by-step explanation:

We have been given that a jet ski depreciates at 11% of its original value each year. The jet ski was $8,000 as it’s time of purchase.

We will exponential decay function to solve our given problem.

$y=a\cdot(1-r)^x$, where,

a = Initial value,

r = Decay rate in decimal form.

$r=\frac{11}{100}=0.11$

$y=\ 8,000\cdot(1-0.11)^5$

$y=\ 8,000\cdot(0.89)^5$

$y=\ 8,000\cdot 0.5584059449$

$y=\ 4467.2475592$

$y\approx \ 4467.25$

Therefore, the value of ski jet after 5 years would be $4467.25.