Question

A sailboat depreciates at 15% of its original value each year. If the sailboat was $9,500 at its time of purchase, what is the value of the sailboat after 7 years?

Answer 1

Its value is multiplied by (1 -15%) = 0.85 each year.
.. $9500*0.85⁷ ≈ $3045 . . . . . value after 7 years

Answer 2

Answer:

The value of the sailboat after 7 years is $3045.4823...

Step-by-step explanation:

Formula for exponential decay:   $A=P(1-r)^t$, where $P=$ Initial value, $A=$ Final value, $r=$ Decay rate in decimal form and $t=$ Time duration.

The sailboat was $9,500 at its time of purchase and it depreciates at 15% of its original value each year.

So here,  $P=9500,\ \ r=15\%=\frac{15}{100}=0.15,\ \ t=7\ years$

Plugging these values into the above formula......

$A=9500(1-0.15)^7\\ \\ A=9500(0.85)^7\\ \\ A=3045.4823...$

So, the value of the sailboat after 7 years is $3045.4823...