Question

today a boat valued at $45,000.Thebvalue is expected to decrease at a rate of 8.5% each year.What is the value of the boat expected to be 3 years from now

Answer 1

Current value of the boat = $45000

Rate at which the value decrease = 8.5%

Value decreased after 1 year = $\frac{8.5}{100}\times45000=3825$

Hence, value becomes = $45000-3825=41175$

Value decreased after 2nd year =

$\frac{8.5}{100}\times41175=3499.875$

Hence, value becomes = $41175-3499.875=37675.125$

Value decreased after 3 year =

$\frac{8.5}{100}\times37675.125=3202.385$

Hence, value becomes = $37675.125-3202.385=34472.74$

So, value of the boat after 3 years becomes $34472.74