Question

a boat cost 12,050 and decreases in value by 12% per year. How much will the boat be worth after 9 years

Answer 1

Given:
Cost = 12,050
depreciation rate = 12%

year   beginning value      dep.rate    depreciation  ending value
1         12,050.00               12%          1,446.00    10,604.00
2         10,604.00               12%          1,272.48      9,331.52
3           9,331.52               12%          1,119.78      8,211.74
4           8,211.74               12%             985.41      7,226.33
5           7,226.33               12%             867.16      6,359.17
6           6,359.17               12%             763.10      5,596.07
7           5,596.07               12%             671.53      4,924.54
8           4,924.54               12%             590.94      4,333.60
9           4,333.60               12%             520.03      3,813.56

The boat will be worth $3,813.56 after 9 years.

Depreciation = beginning cost x depreciation rate
Ending cost = beginning cost - depreciation

Depreciation is the wear and tear of an object that decreases its value.