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inysia [295]
3 years ago
14

A boat costs $15,750 and decreases in value by 5% per year how much will it be worth after 14 years?

Mathematics
2 answers:
LUCKY_DIMON [66]3 years ago
6 0
5%x14=70%
15,750x.70= 11,025
15,750-11,025= 4,725
nekit [7.7K]3 years ago
5 0

In case of depreciation, we have to use the following formula

P(t) = P_{0)(1-r)^t

P(t) is the price after t years.

r is the rate of depreciation.

t is the number of years.

And P0 is the initial price .

On substituting the given values, we will get

P(t)= 15750(1-0.05)^{14} \\ P(t) = 15750(0.95)^{14} \\ P(t) = $7680.88

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