Question

a speedboat that costs $45,000 is depreciating at a rate of 20% per year. Find the value of the boat after 4 years.

Answer 1

Answer:

$18,432

Step-by-step explanation:

After the first year, the speedboat is now worth $36,000 because 20% of 45,000 is 9,000, and 45,000 - 9,000 = 36,000. After the second year, it is now worth $28,800. After the third year, it is worth $23,040 since 20% of 28,800 is 5,760 and 28,800 - 5,760 = 23,040. After four years, the boat that once was worth $45,000 is now worth $18,432.