kmoraisyTayle
Answered

A boat costs $12,050 and decreases in value by 12% per year. How much will the boat be worth after 9 years?


A $33,415.60

B $3,813.56

C $11,942.00

D $3,355.94

Verified Answer :

B $3,813.56 is the correct answer

1 year = $10,604
2 years = $9,331.52
3 years = $8,211.74
4 years = $7,226.33
5 years = $6,359.17
6 years = $5,596.07
7 years = $4,924.54
8 years = $4,333.60
9 years = $3,813.56









carlosego

For this case we have the following expression:

\(y = A (b) ^ x\)

Where,

  • A: initial value
  • b: rate of change
  • x: number of years
  • y: future value

Therefore, replacing values we have:

\(y = 12050 * (0.88) ^ 9\\y = 3813.56\)

Answer:

The boat will be worth after 9 years about:

B $ 3,813.56

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