Question

A boat costs $12,050 and decreases in value by 12% per year. How much will the boat be worth after 9 years?

Answer 1

For this case we have the following expression:

$y = A (b) ^ x$

Where,

• A: initial value
• b: rate of change
• x: number of years
• y: future value

Therefore, replacing values we have:

$y = 12050 * (0.88) ^ 9\\y = 3813.56$

Answer:

The boat will be worth after 9 years about:

B $ 3,813.56

Answer 2

B $3,813.56 is the correct answer

1 year = $10,604
2 years = $9,331.52
3 years = $8,211.74
4 years = $7,226.33
5 years = $6,359.17
6 years = $5,596.07
7 years = $4,924.54
8 years = $4,333.60
9 years = $3,813.56