Question

A boat costs $11,850 and decreases in value by 10% per year. How much will the boat be worth after 8 years?

Answer 1

11,850 x .9 = 11,605  

11605 x . 9 = 9,598.5       year 2 

9,598.5 x .9 = 8,638.65

8,635 x .9 = 7,774.785       year 4

7,774.785 x .9 = 6,997.31

6,6997.31 x .9 = 6297.58     year 6 

6297.58 x .9 = 5,667.82 

5,667.82 x .9 = 5,101.04 year 8 

The answer is D 

Answer 2

Answer:

The boat  worth is  $5101.04  after 8 years .

Option D is correct .

Step-by-step explanation:

The decrease exponential function is written in the form

$y = a (1 - r)^{t}$

Where a is the initial value , r is the rate of interest in the decimal form and t is the time in years .

As given

A boat costs $11,850 and decreases in value by 10% per year .

a = $ 11850

10% is written in the decimal form

$= \frac{10}{100}$

= 0.10

t = 8 years

Put all the values in the function

$y = 11850(1 - 0.10)^{8}$

$y = 11850(0.9)^{8}$

$y = 11850\times 0.430467$

y = $5101.04

Therefore the boat  worth is  $5101.04  after 8 years .

Option D is correct .