Question

A boat costs $19,200 and decreases in value by 12% per year. How much will the boat be worth after 5 years?

Answer 1

10132 i believeeeee
i'm not 100% sure though sooo

Answer 2

The boat will be worth $10,132.45 after 5 years.

Year                    12%                  Value
0                                                $19,200
1                      2,304                    16,896
2                      2,027.52                14,868.48
3                      1,784.22                13,084.26
4                      1,570.11                11,514.15
5                      1,381.70                10,132.45

OR YOU CAN JUST DO IT LIKE THIS.

100% - 12% = 88% / 100% = 0.88

$19,200 * 0.88 * 0.88 * 0.88 * 0.88 * 0.88 = 10,132.4528

0.88 is multiplied 5 times to the original cost because 88% of the previous year's value will be the basis for the 12% decrease in value.