Question

A new motorboat costs $6000. The value of the boat decreases by 15% each year. What is the value of the boat after 3 years?

Answer 1

Answer:

 The value of the boat after 3 years is $\ 3,684.75$  

Step-by-step explanation:

we know that

The  formula to calculate the depreciated value  is equal to  

$V=P(1-r)^{x}$  

where  

V is the depreciated value  

P is the original value  

r is the rate of depreciation  in decimal  

x  is Number of Time Periods  

in this problem we have  

$P=\ 6,000\\r=15\%=15/100=0.15\\x=3\ years$

substitute

$V=6,000(1-0.15)^{3}$  

$V=6,000(0.85)^{3}$

$V=\ 3,684.75$