Question

a boat costs $16600 and decreased in value by 14% per year. How much will the boat be worth after 11 years?

Answer 1

The worth of boat after 11 years is $ 3159.3013

Solution:

Given that,

Boat costs $16600 and decreased in value by 14% per year

To find: Worth of boat after 11 years

The formula for decreasing function is given as:

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

Where,

y is the value after "t" years

t is the number of years

a is the initial value

r is decreasing rate in decimal

From given,

a = 16600

t = 11

$r = 14 \% = \frac{14}{100} = 0.14$

Substituting the values we get,

$y = 16600(1-0.14)^{11}\\\\y = 16600(0.86)^{11}\\\\y = 16600 \times 0.1903\\\\y = 3159.3013$

Thus the worth of boat after 11 years is $ 3159.3013