Question

You purchased a boat for $19,000 and can expect the boat to depreciate at an annual rate of 7.3%. What will the value of your car be 4 years after purchasing it

Answer 1

Answer:

$14,030.48

Step-by-step explanation:

We can use the following formula to solve:

$A=P(1-r)^t$

P = principal value

r = rate (decimal)

t = time (years)

First, lets change 7.3% into a decimal:

7.3% -> $\frac{7.3}{100}$ -> 0.073

Next, plug in the values:

$A=19,000(1-0.073)^4$

$A=14,030.48$

The value will be $14,030.48