Answer:
$3,045.48
Step-by-step explanation:
Hello
the sailboat depreciates at 15% of its original value each year ,it means that at the end of each year the sailboat value is 85% of the value at the beginning of the year,we can express that.
Value at the end of the year= value at the beginning of the year *85%
Value at the end of the year= value at the beginning of the year *85/100
Value at the end of the year= value at the beginning of the year *0.85
Step 1
year 1
Value at the end of the year 1= value at the beginning of the year *0.85
Value at the end of the year 1= $9500 *0.85
V=$8075,this value is the initial for the next year
Step 2
year 2
Value at the end of the year 2= value at the beginning of the year *0.85
Value at the end of the year 2= 8075 *0.85
V=$6863.75,this value is the initial for the next year
Step 3
year 3
Value at the end of the year 3= value at the beginning of the year *0.85
Value at the end of the year 3= $6863.75*0.85
V=$5834.18,this value is the initial for the next year
Step 4
year 4
Value at the end of the year 4= value at the beginning of the year *0.85
Value at the end of the year 4= $5834.18*0.85
V=$4959.059,this value is the initial for the next year
Step 5
year 5
Value at the end of the year 5= value at the beginning of the year *0.85
Value at the end of the year 5= $4959.059*0.85
V=$4215.20,this value is the initial for the next year
Step 6
year 6
Value at the end of the year 6= value at the beginning of the year *0.85
Value at the end of the year 6= $4215.20*0.85
V=$3582.92,this value is the initial for the next year
Step 7
year 7
Value at the end of the year 7= value at the beginning of the year *0.85
Value at the end of the year 7= $3582.92*0.85
V=$3045.48,this is the value of the sailboat after seven years
Have a great day
