Question

Your shiny new boat cost $7650. The depreciation for your boat is 14% per year. You want to know the value of your vehicle in 3 years. What is the equation that models this problem?

Answer 1

Answer:

The equation is

$V(3) = 7650(0.86)^{3}$

Which means that the value of the vehicle in 3 years is $4,865.8

Step-by-step explanation:

The equation for the value of a product with a depreciation rate of r(as a decimal) is given by:

$V(t) = V(0)(1-r)^{t}$

In which V(0) is the initial value.

Your shiny new boat cost $7650

This means that $V(0) = 7650$

The depreciation for your boat is 14% per year.

This means that $r = 0.14$

So

$V(t) = V(0)(1-r)^{t}$

$V(t) = 7650(1-0.14)^{t}$

$V(t) = 7650(0.86)^{t}$

You want to know the value of your vehicle in 3 years. What is the equation that models this problem?

The equation is

$V(3) = 7650(0.86)^{3}$

Which means that the value of the vehicle in 3 years is $4,865.8