Question

A jet ski depreciates at 11% of its original value each year. If the Jetske was $1000 at its time of purchase, what is the value of the jet ski after five years?

Answer 1

With the given information, we can form an exponential equation to solve it. In this case, since the jet ski retains only 89% of its original value, we can make the equation y=1000(0.89)^(x). Now, since the problem is asking for the value of the jetski after five years, we can simply plug in 5 for x and solve. Using a calculator, we get the answer $558.41.