Answer:
She should multiply her current balance by 1.052.
Step-by-step explanation:
Her investment is an account with a simple interest of 5.2% per year.
So in one year, she will have 100% + 5.2% = 105.2% of her initial amount. To find the multiplier, we divide by 100%. So
105.2%/100% = 1.052
She should multiply her current balance by 1.052.
If the boat initially cost $11850 and INCREASED in value by 10% per year, we'd calculate the final value like this:
V = $11850(1+0.10)^8
But if the boat is losing value (depreciating) over time, we'd calculate its final value like this:
V = $11850(1-0.10)^8 = $11850(0.90)^8 = $11850(0.4305) = $5101.04 (answer)
The price of 1 liter motor oil is $0.97